FORM 10-K |
California (State or other jurisdiction of incorporation or organization) | 20-8856755 (IRS Employer Identification No.) |
3701 Wilshire Boulevard, Suite 900, Los Angeles, California (Address of principal executive offices) | 90010 (Zip Code) |
(213) 210-2000 (Registrant’s telephone number, including area code) | |
Securities Registered Pursuant to Section 12(b) of the Act: | |
Title of Each Class Common Stock, No Par Value | Name of Each Exchange on Which Registered Nasdaq Global Select Market |
Securities Registered Pursuant to Section 12(g) of the Act: None |
Large accelerated filer | ¨ | Accelerated filer | x | ||
Non-accelerated filer | ¨ | Smaller reporting company | x | ||
Emerging growth company | x |
Page | ||
Part I | ||
Item 1. | ||
Item 1A. | ||
Item 1B. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Part II | ||
Item 5. | ||
Item 6. | ||
Item 7. | ||
Item 7A. | ||
Item 8. | ||
Item 9. | ||
Item 9A. | ||
Item 9B. | ||
Part III | ||
Item 10. | ||
Item 11. | ||
Item 12. | ||
Item 13. | ||
Item 14. | ||
Part IV | ||
Item 15. | ||
Item 16. | ||
• | business and economic conditions, particularly those affecting the financial services industry and our primary market areas; |
• | our ability to successfully manage our credit risk and the sufficiency of our allowance for loan loss; |
• | factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers and the success of construction projects that we finance, including any loans acquired in acquisition transactions; |
• | governmental monetary and fiscal policies, and changes in market interest rates; |
• | compliance with governmental and regulatory requirements, including the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and others relating to banking, consumer protection, securities and tax matters; |
• | the significant portion of our loan portfolio that is comprised of real estate loans; |
• | our ability to attract and retain Korean-American customers; |
• | our ability to identify and address cyber-security risks, fraud and systems errors; |
• | our ability to effectively execute our strategic plan and manage our growth; |
• | changes in our senior management team and our ability to attract, motivate and retain qualified personnel; |
• | liquidity issues, including fluctuations in the fair value and liquidity of the securities we hold for sale and our ability to raise additional capital, if necessary; |
• | costs and obligations associated with operating as a public company; |
• | effects of competition from a wide variety of local, regional, national and other providers of financial, investment and insurance services; |
• | the impact of any claims or legal actions to which we may be subject, including any effect on our reputation; and |
• | changes in federal tax law or policy. |
• | maintaining close relationships among the Company’s customers and their designated banker to ensure ongoing credit monitoring and loan servicing; |
• | granting credit on a sound basis with full knowledge of the purpose and source of repayment for such credit ensuring that primary and secondary sources of repayment are adequate in relation to the amount of the loan; |
• | developing and maintaining targeted levels of diversification for the loan portfolio as a whole and for loans within each category; and |
• | ensuring that each loan is properly documented and that any insurance coverage requirements are satisfied. |
• | Real estate loans consist of: |
◦ | Commercial property - loans secured by commercial real estate (“CRE”) other than loans guaranteed by the U.S. Small Business Administration (“SBA”); |
◦ | Residential property - loans secured by single family residential real estate; |
◦ | SBA property - SBA guaranteed loans secured by commercial real estate; and |
◦ | Construction. |
• | Commercial and industrial loans consist of: |
◦ | Commercial term; |
◦ | Commercial lines of credit; |
◦ | SBA commercial term; and |
◦ | Trade finance. |
• | Other consumer loans consist of automobile secured loans and personal loans. |
December 31, | ||||||||||||||
2018 | 2017 | |||||||||||||
($ in thousands) | Amount | Percentage to Total | Amount | Percentage to Total | ||||||||||
Real estate loans: | ||||||||||||||
Commercial property | $ | 709,409 | 53.1 | % | $ | 662,031 | 55.5 | % | ||||||
Residential property | 233,816 | 17.5 | % | 168,560 | 14.2 | % | ||||||||
SBA property | 120,939 | 9.0 | % | 131,740 | 11.1 | % | ||||||||
Construction | 27,323 | 2.0 | % | 23,117 | 1.9 | % | ||||||||
Commercial and industrial loans: | ||||||||||||||
Commercial term | 102,133 | 7.6 | % | 77,402 | 6.5 | % | ||||||||
Commercial lines of credit | 80,473 | 6.0 | % | 60,822 | 5.1 | % | ||||||||
SBA commercial term | 27,147 | 2.0 | % | 30,376 | 2.6 | % | ||||||||
Trade finance | 11,521 | 0.9 | % | 1,929 | 0.2 | % | ||||||||
Other consumer loans | 25,921 | 1.9 | % | 34,022 | 2.9 | % | ||||||||
Loans held-for-investment | $ | 1,338,682 | 100.0 | % | $ | 1,189,999 | 100.0 | % | ||||||
December 31, | ||||||||||||||
2018 | 2017 | |||||||||||||
($ in thousands) | Amount | Percentage to Total | Amount | Percentage to Total | ||||||||||
Real estate loans: | ||||||||||||||
Residential property | $ | — | — | % | $ | 270 | 5.1 | % | ||||||
SBA property | 5,481 | 94.8 | % | 3,857 | 72.8 | % | ||||||||
Commercial and industrial loans: | ||||||||||||||
SBA commercial term | 300 | 5.2 | % | 1,170 | 22.1 | % | ||||||||
Loans held-for-sale | $ | 5,781 | 100.0 | % | $ | 5,297 | 100.0 | % | ||||||
• | provide a ready source of balance sheet liquidity, ensuring adequate availability of funds to meet fluctuations in loan demand, deposit balances and other changes in balance sheet volumes and composition; |
• | serve as a tool to manage asset-quality diversification of assets; and |
• | provide a vehicle to help manage interest rate risk profile pursuant to established policies and maximize overall return. |
• | creating a Financial Stability Oversight Council tasked with identifying and monitoring systemic risks in the financial system; |
• | creating the CFPB, which is responsible for implementing, examining and enforcing compliance with federal consumer financial protection laws; |
• | requiring the FDIC to make its capital requirements for insured depository institutions countercyclical, so that capital requirements increase in times of economic expansion and decrease in times of economic contraction; |
• | imposing more stringent capital requirements on bank holding companies and subjecting certain activities, including inter-state mergers and acquisitions, to heightened capital conditions; |
• | with respect to mortgage lending: |
◦ | significantly expanding requirements applicable to loans secured by single family residential real property; |
◦ | imposing strict rules on mortgage servicing, and |
◦ | requiring the originator of a securitized loan, or the sponsor of a securitization, to retain at least 5% of the credit risk of securitized exposures unless the underlying exposures are qualified residential mortgages or meet certain underwriting standards; |
• | changing the assessment base for federal deposit insurance from the amount of the insured deposits held by the depository institution to the depository institution’s average total consolidated assets less tangible equity, eliminating the ceiling on the size of the FDIC’s Deposit Insurance Fund (“DIF”) and increasing the floor of the size of the FDIC’s DIF; |
• | eliminating all remaining restrictions on interstate banking by authorizing state banks to establish de novo banking offices in any state that would permit a bank chartered in that state to open a banking office at that location; |
• | repealing the federal prohibitions on the payment of interest on demand deposits, thereby permitting depository institutions to pay interest on business transaction and other accounts; and |
• | in the so-called “Volcker Rule,” subject to numerous exceptions, prohibiting depository institutions and affiliates from certain investments in, and sponsorship of, hedge funds and private equity funds and from engaging in proprietary trading. |
• | 4.0% Tier 1 leverage ratio; |
• | 4.5% CET1 to risk-weighted assets; |
• | 6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets; and |
• | 8.0% total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets. |
• | 4.0% Tier 1 leverage ratio; |
• | 4.5% CET1 to risk-weighted assets, plus the capital conservation buffer, effectively resulting in a minimum ratio of CET1 to risk-weighted assets of at least 7%; |
• | 6.0% Tier 1 capital to risk-weighted assets, plus the capital conservation buffer, effectively resulting in a minimum Tier 1 capital ratio of at least 8.5%; and |
• | 8.0% total capital to risk-weighted assets, plus the capital conservation buffer, effectively resulting in a minimum total capital ratio of at least 10.5%. |
• | consistent with the Basel I risk-based capital rules, assigning exposures secured by single-family residential properties to either a 50% risk weight for first-lien mortgages that meet prudent underwriting standards or a 100% risk weight category for all other mortgages; |
• | providing for a 20% credit conversion factor for the unused portion of a commitment with an original maturity of one year or less that is not unconditionally cancellable (set at 0% under the Basel I risk-based capital rules); |
• | assigning a 150% risk weight to all exposures that are nonaccrual or 90 days or more past due (set at 100% under the Basel I risk-based capital rules), except for those secured by single-family residential properties, which will be assigned a 100% risk weight, consistent with the Basel I risk-based capital rules; |
• | applying a 150% risk weight instead of a 100% risk weight for certain high volatility CRE acquisition, development and construction loans; and |
• | applying a 250% risk weight to the portion of mortgage servicing rights and deferred tax assets arising from temporary differences that could not be realized through net operating loss carrybacks that are not deducted from CET1 capital (set at 100% under the Basel I risk-based capital rules). |
PCA category | Total Risk-Based Capital Ratio | Tier 1 Risk-Based Capital Ratio | CET 1 Risk-Based Capital Ratio | Tier 1 Leverage Ratio | ||||
Well capitalized | 10.0% | 8.0% | 6.5% | 5.0% | ||||
Adequately capitalized | 8.0% | 6.0% | 4.5% | 4.0% | ||||
Undercapitalized | < 8.0% | < 6.0% | < 4.5% | < 4.0% | ||||
Significantly undercapitalized | < 6.0% | < 4.0% | < 3.0% | < 3.0% | ||||
Critically undercapitalized | Tangible Equity / Total Assets ≤ 2.0% | |||||||
• | a decrease in the demand for our loans and other products and services offered by us; |
• | a decrease in our deposit balances due to overall reductions in the accounts of customers; |
• | a decrease in the value of our investment securities and loans; |
• | an increase in the level of nonperforming and classified loans: |
• | an increase in provisions for loan losses and loan charge-offs; |
• | a decrease in net interest income derived from our lending and deposit gathering activities; |
• | a decrease in the Company’s stock price; |
• | an increase in our operating expenses associated with attending to the effects of the above-listed circumstances; and/or |
• | a decrease in real estate values or a general decrease in capital available to finance real estate transactions, which could have a negative impact on borrowers’ ability to pay off their loans at maturity. |
• | the proliferation of new technologies, and the use of the Internet and telecommunications technologies to conduct financial transactions; |
• | these threats arise from numerous sources, not all of which are in our control, including among others human error, fraud or malice on the part of employees or third-parties, accidental technological failure, electrical or telecommunication outages, failures of computer servers or other damage to our property or assets, natural disasters or severe weather conditions, health emergencies or pandemics, or outbreaks of hostilities or terrorist acts; |
• | the techniques used in cyber-attacks change frequently and may not be recognized until launched or until well after the breach has occurred; |
• | the increased sophistication and activities of organized crime groups, hackers, terrorist organizations, hostile foreign governments, disgruntled employees or vendors, activists and other external parties, including those involved in corporate espionage; |
• | the vulnerability of systems to third-parties seeking to gain access to such systems either directly or using equipment or security passwords belonging to employees, customers, third-party service providers or other users of our systems; and |
• | our frequent transmission of sensitive information to, and storage of such information by, third-parties, including our vendors and regulators, and possible weaknesses that go undetected in our data systems notwithstanding the testing we conduct of those systems. |
As of or For the Year Ended December 31, | ||||||||||||||||||||
($ in thousands, except per share data) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Selected balance sheet data: | ||||||||||||||||||||
Cash and cash equivalents | $ | 162,273 | $ | 73,658 | $ | 69,951 | $ | 76,950 | $ | 67,536 | ||||||||||
Securities available-for-sale | 146,991 | 129,689 | 82,838 | 84,847 | 49,645 | |||||||||||||||
Securities held-to-maturity | 21,760 | 21,070 | 17,584 | 17,338 | 12,941 | |||||||||||||||
Loans held-for-sale | 5,781 | 5,297 | 2,150 | 1,941 | 17,521 | |||||||||||||||
Loans held-for-investment | 1,338,682 | 1,189,999 | 1,031,112 | 844,369 | 732,520 | |||||||||||||||
Allowance for loan losses | (13,167 | ) | (12,224 | ) | (11,320 | ) | (9,345 | ) | (9,432 | ) | ||||||||||
Total assets | 1,697,028 | 1,441,999 | 1,226,642 | 1,042,517 | 893,960 | |||||||||||||||
Total deposits | 1,443,753 | 1,251,290 | 1,091,812 | 939,439 | 802,828 | |||||||||||||||
Shareholders’ equity | 210,296 | 142,184 | 127,007 | 98,040 | 86,425 | |||||||||||||||
Selected income statement data: | ||||||||||||||||||||
Interest income | $ | 83,699 | $ | 65,267 | $ | 52,595 | $ | 43,271 | $ | 37,180 | ||||||||||
Interest expense | 17,951 | 10,097 | 7,014 | 6,231 | 5,059 | |||||||||||||||
Net interest income | 65,748 | 55,170 | 45,581 | 37,040 | 32,121 | |||||||||||||||
Provision (reversal) for loan losses | 1,231 | 1,827 | 2,283 | 412 | (1,097 | ) | ||||||||||||||
Noninterest income | 10,454 | 13,894 | 13,619 | 12,779 | 12,232 | |||||||||||||||
Noninterest expense | 40,226 | 35,895 | 32,514 | 28,320 | 25,069 | |||||||||||||||
Income before income taxes | 34,745 | 31,342 | 24,403 | 21,087 | 20,381 | |||||||||||||||
Income tax expense | 10,444 | 14,939 | 10,401 | 8,901 | 8,562 | |||||||||||||||
Net income | 24,301 | 16,403 | 14,002 | 12,186 | 11,819 | |||||||||||||||
Preferred stock dividends and discount accretion | — | — | — | — | 336 | |||||||||||||||
Net income available to common shareholders | 24,301 | 16,403 | 14,002 | 12,186 | 11,483 | |||||||||||||||
Per share data: | ||||||||||||||||||||
Earnings per common share, basic | $ | 1.69 | $ | 1.22 | $ | 1.12 | $ | 1.03 | $ | 1.00 | ||||||||||
Earnings per common share, diluted | 1.65 | 1.21 | 1.11 | 1.02 | 1.00 | |||||||||||||||
Book value per common share (1) | 13.16 | 10.60 | 9.48 | 8.26 | 7.31 | |||||||||||||||
Cash dividends declared per common share | 0.12 | 0.12 | 0.11 | 0.08 | — | |||||||||||||||
Outstanding share data: | ||||||||||||||||||||
Number of common shares outstanding | 15,977,754 | 13,417,899 | 13,391,222 | 11,865,145 | 11,816,343 | |||||||||||||||
Weighted-average common shares outstanding, basic | 14,397,075 | 13,408,030 | 12,532,807 | 11,840,528 | 11,427,639 | |||||||||||||||
Weighted-average common shares outstanding, diluted | 14,691,370 | 13,540,293 | 12,607,990 | 11,929,503 | 11,477,424 | |||||||||||||||
Selected performance ratios: | ||||||||||||||||||||
Return on average assets | 1.53 | % | 1.22 | % | 1.25 | % | 1.25 | % | 1.46 | % | ||||||||||
Return on average shareholders’ equity | 14.26 | % | 12.00 | % | 12.47 | % | 13.10 | % | 14.67 | % | ||||||||||
Dividend payout ratio (2) | 7.10 | % | 9.84 | % | 9.82 | % | 7.77 | % | — | % | ||||||||||
Efficiency ratio (3) | 52.79 | % | 51.97 | % | 54.92 | % | 56.85 | % | 56.52 | % | ||||||||||
Yield on average interest-earning assets | 5.38 | % | 4.99 | % | 4.82 | % | 4.54 | % | 4.73 | % | ||||||||||
Cost of average interest-bearing liabilities | 1.65 | % | 1.14 | % | 0.96 | % | 0.95 | % | 0.93 | % | ||||||||||
Net interest spread | 3.73 | % | 3.85 | % | 3.86 | % | 3.59 | % | 3.80 | % | ||||||||||
Net interest margin (4) | 4.23 | % | 4.22 | % | 4.18 | % | 3.89 | % | 4.09 | % | ||||||||||
Total loans to total deposits ratio (5) | 93.12 | % | 95.53 | % | 94.64 | % | 90.09 | % | 93.42 | % |
As of or For the Year Ended December 31, | ||||||||||||||||||||
($ in thousands, except per share data) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Asset quality: | ||||||||||||||||||||
Loans 30 to 89 days past due and still accruing | $ | 377 | $ | 1,341 | $ | 2,094 | $ | 456 | $ | 1,279 | ||||||||||
Loans past due 90 days or more and still accruing | — | — | — | — | — | |||||||||||||||
Nonaccrual loans | 1,061 | 3,234 | 1,848 | 2,372 | 6,452 | |||||||||||||||
Nonperforming assets (6) | 1,061 | 3,333 | 2,354 | 2,372 | 6,452 | |||||||||||||||
Net charge-offs | 288 | 923 | 308 | 500 | 2,077 | |||||||||||||||
Loans 30 to 89 days past due and still accruing to loans held-for-investment | 0.03 | % | 0.11 | % | 0.20 | % | 0.05 | % | 0.17 | % | ||||||||||
Nonaccrual loans to loans held-for-investment | 0.08 | % | 0.27 | % | 0.18 | % | 0.28 | % | 0.88 | % | ||||||||||
Nonaccrual loans to allowance for loan losses | 8.06 | % | 26.46 | % | 16.33 | % | 25.38 | % | 68.41 | % | ||||||||||
Nonperforming assets to total assets | 0.06 | % | 0.23 | % | 0.19 | % | 0.23 | % | 0.72 | % | ||||||||||
Allowance for loan losses to loans held-for-investment | 0.98 | % | 1.03 | % | 1.10 | % | 1.11 | % | 1.29 | % | ||||||||||
Allowance for loan losses to nonaccrual loans | 1,241.00 | % | 377.98 | % | 612.55 | % | 393.97 | % | 146.19 | % | ||||||||||
Net charge-offs to average loans held-for-investment | 0.02 | % | 0.08 | % | 0.03 | % | 0.06 | % | 0.31 | % | ||||||||||
Capital ratios: | ||||||||||||||||||||
Shareholders’ equity to total assets | 12.39 | % | 9.86 | % | 10.35 | % | 9.40 | % | 9.67 | % | ||||||||||
Average equity to average assets | 10.72 | % | 10.20 | % | 10.01 | % | 9.52 | % | 9.95 | % | ||||||||||
Pacific City Financial Corporation | ||||||||||||||||||||
Common tier 1 capital (to risk-weighted assets) (7) | 16.28 | % | 12.15 | % | 12.47 | % | 12.26 | % | N/A | |||||||||||
Total capital (to risk-weighted assets) | 17.31 | % | 13.20 | % | 13.59 | % | 13.44 | % | 13.69 | % | ||||||||||
Tier 1 capital (to risk-weighted assets) | 16.28 | % | 12.15 | % | 12.47 | % | 12.26 | % | 12.44 | % | ||||||||||
Tier 1 capital (to average assets) | 12.60 | % | 10.01 | % | 10.48 | % | 9.40 | % | 9.86 | % | ||||||||||
Pacific City Bank | ||||||||||||||||||||
Common tier 1 capital (to risk-weighted assets) (7) | 16.19 | % | 12.06 | % | 12.35 | % | 12.07 | % | N/A | |||||||||||
Total capital (to risk-weighted assets) | 17.21 | % | 13.12 | % | 13.48 | % | 13.25 | % | 13.34 | % | ||||||||||
Tier 1 capital (to risk-weighted assets) | 16.19 | % | 12.06 | % | 12.35 | % | 12.07 | % | 12.09 | % | ||||||||||
Tier 1 capital (to average assets) | 12.53 | % | 9.94 | % | 10.38 | % | 9.25 | % | 9.58 | % | ||||||||||
(1) | Shareholders’ equity divided by common shares outstanding. |
(2) | Dividends declared per common share divided by basic earnings per common share. |
(3) | Noninterest expenses divided by the sum of net interest income and noninterest income. |
(4) | Net interest income divided by average total interest-earning assets. |
(5) | Total loans include both loans held-for-sale and loans held-for-investment, net of unearned loan costs (fees). |
(6) | Nonperforming assets include nonperforming loans (nonaccrual loans plus loans past due 90 days or more and still accruing) and other real estate owned. |
(7) | Tier 1 common equity to risk-weighted assets rate became required on January 1, 2015. |
• | Net income totaled $24.3 million or $1.65 per diluted common share for the year ended December 31, 2018; |
• | Total assets were $1.70 billion at December 31, 2018, an increase of $255.0 million, or 17.7%, from $1.44 billion at December 31, 2017; |
• | Loans held-for-investment, net of deferred costs (fees), were $1.34 billion at December 31, 2018, an increase of $148.7 million, or 12.5%, from $1.19 billion at December 31, 2017; and |
• | Total deposits were $1.44 billion at December 31, 2018, an increase of $192.5 million, or 15.4%, from $1.25 billion at December 31, 2017. |
• | Diluted earnings per common share was $1.65, $1.21 and $1.11, respectively, for the years ended December 31, 2018, 2017 and 2016. |
• | Net interest margin was 4.23%, 4.22% and 4.18%, respectively, for the years ended December 31, 2018, 2017 and 2016. |
Year Ended December 31, | |||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||
($ in thousands) | Average Balance | Interest | Yield/Cost | Average Balance | Interest | Yield/Cost | Average Balance | Interest | Yield/Cost | ||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||
Total loans (1) | $ | 1,264,166 | $ | 76,837 | 6.08 | % | $ | 1,111,248 | $ | 61,516 | 5.54 | % | $ | 961,482 | $ | 50,058 | 5.21 | % | |||||||||||||||
U.S. government agencies | 23,671 | 576 | 2.43 | % | 24,762 | 571 | 2.31 | % | 20,928 | 460 | 2.20 | % | |||||||||||||||||||||
Mortgage backed securities | 70,971 | 1,717 | 2.42 | % | 57,171 | 1,110 | 1.94 | % | 45,822 | 797 | 1.74 | % | |||||||||||||||||||||
Collateralized mortgage obligation | 53,312 | 1,272 | 2.39 | % | 36,660 | 746 | 2.03 | % | 21,032 | 337 | 1.60 | % | |||||||||||||||||||||
Municipal securities tax exempt (2) | 6,312 | 159 | 2.52 | % | 8,319 | 187 | 2.25 | % | 7,613 | 147 | 1.93 | % | |||||||||||||||||||||
Interest-bearing deposits in other financial institutions | 130,453 | 2,539 | 1.95 | % | 62,327 | 690 | 1.11 | % | 28,413 | 145 | 0.51 | % | |||||||||||||||||||||
FHLB and other bank stock | 7,174 | 599 | 8.35 | % | 6,310 | 447 | 7.08 | % | 5,452 | 651 | 11.94 | % | |||||||||||||||||||||
Total interest-earning assets | 1,556,059 | 83,699 | 5.38 | % | 1,306,797 | 65,267 | 4.99 | % | 1,090,742 | 52,595 | 4.82 | % | |||||||||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | 19,079 | 16,973 | 15,848 | ||||||||||||||||||||||||||||||
Allowances for loan losses | (12,632 | ) | (11,435 | ) | (10,170 | ) | |||||||||||||||||||||||||||
Other assets | 26,827 | 27,793 | 25,990 | ||||||||||||||||||||||||||||||
Total noninterest earning assets | 33,274 | 33,331 | 31,668 | ||||||||||||||||||||||||||||||
Total assets | $ | 1,589,333 | $ | 1,340,128 | $ | 1,122,410 | |||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||
MMDA and Super NOW | $ | 287,131 | 3,477 | 1.21 | % | $ | 320,701 | 3,244 | 1.01 | % | $ | 250,736 | 2,264 | 0.90 | % | ||||||||||||||||||
Savings | 8,613 | 26 | 0.30 | % | 8,873 | 25 | 0.28 | % | 9,500 | 26 | 0.27 | % | |||||||||||||||||||||
Time deposits | 758,029 | 13,837 | 1.83 | % | 539,068 | 6,480 | 1.20 | % | 468,953 | 4,719 | 1.01 | % | |||||||||||||||||||||
Borrowings | 34,904 | 611 | 1.75 | % | 20,384 | 348 | 1.71 | % | 1,194 | 5 | 0.42 | % | |||||||||||||||||||||
Total interest-bearing liabilities | 1,088,677 | 17,951 | 1.65 | % | 889,026 | 10,097 | 1.14 | % | 730,383 | 7,014 | 0.96 | % | |||||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Demand deposits | 319,832 | 305,354 | 271,628 | ||||||||||||||||||||||||||||||
Other liabilities | 10,395 | 9,026 | 8,092 | ||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities | 330,227 | 314,380 | 279,720 | ||||||||||||||||||||||||||||||
Total liabilities | 1,418,904 | 1,203,406 | 1,010,103 | ||||||||||||||||||||||||||||||
Shareholders’ equity | 170,429 | 136,722 | 112,307 | ||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,589,333 | $ | 1,340,128 | $ | 1,122,410 | |||||||||||||||||||||||||||
Net interest income | $ | 65,748 | $ | 55,170 | $ | 45,581 | |||||||||||||||||||||||||||
Net interest spread (3) | 3.73 | % | 3.85 | % | 3.86 | % | |||||||||||||||||||||||||||
Net interest margin (4) | 4.23 | % | 4.22 | % | 4.18 | % | |||||||||||||||||||||||||||
Cost of funds (5) | 1.27 | % | 0.85 | % | 0.70 | % | |||||||||||||||||||||||||||
(1) | Average balance includes both loans held-for-sale and loans held-for-investment, as well as nonaccrual loans. Net amortization of deferred loan fees (cost) of $515 thousand, $559 thousand and $639 thousand are included in the interest income for the years ended December 31, 2018, 2017 and 2016, respectively. |
(2) | The yield on municipal bonds has not been computed on a tax-equivalent basis. |
(3) | Net interest spread is calculated by subtracting average rate on interest-bearing liabilities from average yield on interest-earning assets. |
(4) | Net interest margin is calculated by dividing net interest income by average interest-earning assets. |
(5) | Cost of funds is calculated by dividing interest expense on deposits by the sum of interest-bearing and noninterest-bearing demand deposits. |
Year Ended December 31, 2018 vs. 2017 | Year Ended December 31, 2017 vs. 2016 | |||||||||||||||||||||||
Increase (Decrease) Due to | Net Increase (Decrease) | Increase (Decrease) Due to | Net Increase (Decrease) | |||||||||||||||||||||
($ in thousands) | Volume | Rate | Volume | Rate | ||||||||||||||||||||
Interest earned on: | ||||||||||||||||||||||||
Total loans | $ | 8,465 | $ | 6,856 | $ | 15,321 | $ | 7,797 | $ | 3,661 | $ | 11,458 | ||||||||||||
Investment securities | 563 | 547 | 1,110 | 575 | 298 | 873 | ||||||||||||||||||
Other interest-earning assets | 1,143 | 858 | 2,001 | 817 | (476 | ) | 341 | |||||||||||||||||
Total interest income | 10,171 | 8,261 | 18,432 | 9,189 | 3,483 | 12,672 | ||||||||||||||||||
Interest paid on: | ||||||||||||||||||||||||
Savings, NOW, and money market deposits | (336 | ) | 570 | 234 | 610 | 369 | 979 | |||||||||||||||||
Time deposits | 2,632 | 4,725 | 7,357 | 706 | 1,055 | 1,761 | ||||||||||||||||||
Other borrowings | 248 | 15 | 263 | 80 | 263 | 343 | ||||||||||||||||||
Total interest expense | 2,544 | 5,310 | 7,854 | 1,396 | 1,687 | 3,083 | ||||||||||||||||||
Change in net interest income | $ | 7,627 | $ | 2,951 | $ | 10,578 | $ | 7,793 | $ | 1,796 | $ | 9,589 | ||||||||||||
Year Ended December 31, | Amount Change | Percentage Change | |||||||||||||
($ in thousands) | 2018 | 2017 | |||||||||||||
Service charges and fees on deposits | $ | 1,500 | $ | 1,377 | $ | 123 | 8.9 | % | |||||||
Loan servicing income | 2,160 | 2,446 | (286 | ) | (11.7 | )% | |||||||||
Gain on sale of loans | 5,560 | 9,000 | (3,440 | ) | (38.2 | )% | |||||||||
Other income | 1,234 | 1,071 | 163 | 15.2 | % | ||||||||||
Total noninterest income | $ | 10,454 | $ | 13,894 | $ | (3,440 | ) | (24.8 | )% | ||||||
Year Ended December 31, | Amount Change | Percentage Change | |||||||||||||
($ in thousands) | 2017 | 2016 | |||||||||||||
Service charges and fees on deposits | $ | 1,377 | $ | 1,457 | $ | (80 | ) | (5.5 | )% | ||||||
Loan servicing income | 2,446 | 2,159 | 287 | 13.3 | % | ||||||||||
Gain on sale of loans | 9,000 | 8,912 | 88 | 1.0 | % | ||||||||||
Gain on sale of securities available-for-sale | — | 8 | (8 | ) | (100.0 | )% | |||||||||
Other income | 1,071 | 1,083 | (12 | ) | (1.1 | )% | |||||||||
Total noninterest income | $ | 13,894 | $ | 13,619 | $ | 275 | 2.0 | % | |||||||
Year Ended December 31, | Amount Change | Percentage Change | |||||||||||||
($ in thousands) | 2018 | 2017 | |||||||||||||
Salaries and employee benefits | $ | 24,473 | $ | 22,829 | $ | 1,644 | 7.2 | % | |||||||
Occupancy and equipment | 4,992 | 4,426 | 566 | 12.8 | % | ||||||||||
Professional fees | 2,176 | 1,842 | 334 | 18.1 | % | ||||||||||
Marketing and business promotion | 2,010 | 1,647 | 363 | 22.0 | % | ||||||||||
Data processing | 1,220 | 1,074 | 146 | 13.6 | % | ||||||||||
Director fees and expenses | 942 | 757 | 185 | 24.4 | % | ||||||||||
Loan related expenses | 353 | 437 | (84 | ) | (19.2 | )% | |||||||||
Regulatory assessments | 544 | 423 | 121 | 28.6 | % | ||||||||||
Other expenses | 3,516 | 2,460 | 1,056 | 42.9 | % | ||||||||||
Total noninterest expense | $ | 40,226 | $ | 35,895 | $ | 4,331 | 12.1 | % | |||||||
Year Ended December 31, | Amount Change | Percentage Change | |||||||||||||
($ in thousands) | 2017 | 2016 | |||||||||||||
Salaries and employee benefits | $ | 22,829 | $ | 19,944 | $ | 2,885 | 14.5 | % | |||||||
Occupancy and equipment | 4,426 | 4,337 | 89 | 2.1 | % | ||||||||||
Professional fees | 1,842 | 1,997 | (155 | ) | (7.8 | )% | |||||||||
Marketing and business promotion | 1,647 | 1,449 | 198 | 13.7 | % | ||||||||||
Data processing | 1,074 | 943 | 131 | 13.9 | % | ||||||||||
Director fees and expenses | 757 | 708 | 49 | 6.9 | % | ||||||||||
Loan related expenses | 437 | 341 | 96 | 28.2 | % | ||||||||||
Regulatory assessments | 423 | 460 | (37 | ) | (8.0 | )% | |||||||||
Other expenses | 2,460 | 2,335 | 125 | 5.4 | % | ||||||||||
Total noninterest expense | $ | 35,895 | $ | 32,514 | $ | 3,381 | 10.4 | % | |||||||
December 31, | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
($ in thousands) | Amortized Cost | Fair Value | Unrealized Gain (Loss) | Amortized Cost | Fair Value | Unrealized Gain (Loss) | ||||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||||||
U.S. government agency and U.S. government sponsored enterprise securities: | ||||||||||||||||||||||||
Mortgage-backed securities | $ | 68,975 | $ | 67,921 | $ | (1,054 | ) | $ | 52,565 | $ | 51,904 | $ | (661 | ) | ||||||||||
Collateralized mortgage obligations | 56,625 | 55,649 | (976 | ) | 51,459 | 50,485 | (974 | ) | ||||||||||||||||
SBA loan pool securities | 23,144 | 22,632 | (512 | ) | 25,231 | 24,925 | (306 | ) | ||||||||||||||||
Municipal bonds | 784 | 789 | 5 | 2,376 | 2,375 | (1 | ) | |||||||||||||||||
Total securities available-for-sale | $ | 149,528 | $ | 146,991 | $ | (2,537 | ) | $ | 131,631 | $ | 129,689 | $ | (1,942 | ) | ||||||||||
Securities held-to-maturity: | ||||||||||||||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities | $ | 16,659 | $ | 16,057 | $ | (602 | ) | $ | 15,807 | $ | 15,558 | $ | (249 | ) | ||||||||||
Municipal bonds | 5,101 | 5,095 | (6 | ) | 5,263 | 5,439 | 176 | |||||||||||||||||
Total securities held-to-maturity | $ | 21,760 | $ | 21,152 | $ | (608 | ) | $ | 21,070 | $ | 20,997 | $ | (73 | ) | ||||||||||
Within One Year | More than One Year through Five Years | More than Five Years through Ten Years | More than Ten Years | Total | |||||||||||||||||||||||||||||||
($ in thousands) | Amortized Cost | Weighted-Average Yield | Amortized Cost | Weighted-Average Yield | Amortized Cost | Weighted-Average Yield | Amortized Cost | Weighted-Average Yield | Amortized Cost | Weighted-Average Yield | |||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||||||||||||
U.S. government agency and U.S. government sponsored enterprise securities: | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | — | — | % | $ | 1,021 | 1.53 | % | $ | 15,171 | 2.32 | % | $ | 52,783 | 2.68 | % | $ | 68,975 | 2.59 | % | |||||||||||||||
Collateralized mortgage obligations | — | — | % | — | — | % | 6,154 | 1.91 | % | 50,471 | 2.68 | % | 56,625 | 2.59 | % | ||||||||||||||||||||
SBA loan pool securities | — | — | % | — | — | % | 4,306 | 2.59 | % | 18,838 | 2.48 | % | 23,144 | 2.50 | % | ||||||||||||||||||||
Municipal bonds | — | — | % | — | — | % | 784 | 2.70 | % | — | — | % | 784 | 2.70 | % | ||||||||||||||||||||
Total securities available-for-sale | $ | — | — | % | $ | 1,021 | 1.53 | % | $ | 26,415 | 2.28 | % | $ | 122,092 | 2.65 | % | $ | 149,528 | 2.58 | % | |||||||||||||||
Securities held-to-maturity: | |||||||||||||||||||||||||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities | $ | — | — | % | $ | 927 | 1.82 | % | $ | 1,486 | 1.88 | % | $ | 14,246 | 2.97 | % | $ | 16,659 | 2.81 | % | |||||||||||||||
Municipal bonds | 133 | 1.54 | % | 1,435 | 2.65 | % | 1,216 | 2.93 | % | 2,317 | 4.83 | % | 5,101 | 3.67 | % | ||||||||||||||||||||
Total securities held-to-maturity | $ | 133 | 1.54 | % | $ | 2,362 | 2.32 | % | $ | 2,702 | 2.35 | % | $ | 16,563 | 3.23 | % | $ | 21,760 | 3.01 | % | |||||||||||||||
December 31, | |||||||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||
Real estate loans: | |||||||||||||||||
Residential property | $ | — | 270 | $ | — | 417 | 13,387 | ||||||||||
SBA property | 5,481 | 3,857 | — | 1,024 | 2,666 | ||||||||||||
Total real estate loans | 5,481 | 4,127 | — | 1,441 | 16,053 | ||||||||||||
Commercial and industrial loans: | |||||||||||||||||
SBA commercial term | 300 | 1,170 | 2,150 | 500 | 1,468 | ||||||||||||
Total commercial and industrial loans | 300 | 1,170 | 2,150 | 500 | 1,468 | ||||||||||||
Loans held-for-sale | $ | 5,781 | 5,297 | $ | 2,150 | 1,941 | 17,521 | ||||||||||
December 31, | |||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||||||||||||||||||
($ in thousands) | Amount | Percentage to Total | Amount | Percentage to Total | Amount | Percentage to Total | Amount | Percentage to Total | Amount | Percentage to Total | |||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||
Commercial property | 709,409 | 53.1 | % | 662,031 | 55.5 | % | 596,392 | 57.8 | % | 484,749 | 57.5 | % | 417,014 | 56.9 | % | ||||||||||||||||||||
Residential property | 233,816 | 17.5 | % | 168,560 | 14.2 | % | 140,419 | 13.6 | % | 129,215 | 15.3 | % | 115,111 | 15.7 | % | ||||||||||||||||||||
SBA property | 120,939 | 9.0 | % | 131,740 | 11.1 | % | 105,221 | 10.2 | % | 87,926 | 10.4 | % | 75,656 | 10.3 | % | ||||||||||||||||||||
Construction | 27,323 | 2.0 | % | 23,117 | 1.9 | % | 14,973 | 1.5 | % | 2,091 | 0.2 | % | 38 | — | % | ||||||||||||||||||||
Total real estate loans | 1,091,487 | 81.6 | % | 985,448 | 82.7 | % | 857,005 | 83.1 | % | 703,981 | 83.4 | % | 607,819 | 82.9 | % | ||||||||||||||||||||
Commercial and industrial loans: | |||||||||||||||||||||||||||||||||||
Commercial term | 102,133 | 7.6 | % | 77,402 | 6.5 | % | 64,898 | 6.3 | % | 51,721 | 6.1 | % | 46,379 | 6.3 | % | ||||||||||||||||||||
Commercial lines of credit | 80,473 | 6.0 | % | 60,822 | 5.1 | % | 45,143 | 4.4 | % | 30,697 | 3.6 | % | 22,473 | 3.1 | % | ||||||||||||||||||||
SBA commercial term | 27,147 | 2.0 | % | 30,376 | 2.6 | % | 26,643 | 2.6 | % | 25,466 | 3.0 | % | 21,990 | 3.0 | % | ||||||||||||||||||||
Trade finance | 11,521 | 0.9 | % | 1,929 | 0.2 | % | 3,551 | 0.3 | % | 3,252 | 0.4 | % | 3,410 | 0.5 | % | ||||||||||||||||||||
Total commercial and industrial loans | 221,274 | 16.5 | % | 170,529 | 14.4 | % | 140,235 | 13.6 | % | 111,136 | 13.1 | % | 94,252 | 12.9 | % | ||||||||||||||||||||
Other consumer loans | 25,921 | 1.9 | % | 34,022 | 2.9 | % | 33,872 | 3.3 | % | 29,252 | 3.5 | % | 30,449 | 4.2 | % | ||||||||||||||||||||
Loans held-for-investment | 1,338,682 | 100.0 | % | 1,189,999 | 100.0 | % | 1,031,112 | 100.0 | % | 844,369 | 100.0 | % | 732,520 | 100.0 | % | ||||||||||||||||||||
Allowance for loan losses | (13,167 | ) | (12,224 | ) | (11,320 | ) | (9,345 | ) | (9,432 | ) | |||||||||||||||||||||||||
Net loans held-for-investment | $ | 1,325,515 | $ | 1,177,775 | $ | 1,019,792 | $ | 835,024 | $ | 723,088 | |||||||||||||||||||||||||
($ in thousands) | Within One Year | Due After One Year to Five Years | Due After Five Years | Total | ||||||||||||
Real estate loans: | ||||||||||||||||
Commercial property | $ | 106,073 | $ | 429,254 | $ | 174,082 | $ | 709,409 | ||||||||
Residential property | — | — | 233,816 | 233,816 | ||||||||||||
SBA property | — | 78 | 120,861 | 120,939 | ||||||||||||
Construction | 27,323 | — | — | 27,323 | ||||||||||||
Total real estate loans | 133,396 | 429,332 | 528,759 | 1,091,487 | ||||||||||||
Commercial and industrial loans: | ||||||||||||||||
Commercial term | 2,892 | 57,513 | 41,728 | 102,133 | ||||||||||||
Commercial lines of credit | 80,071 | 402 | — | 80,473 | ||||||||||||
SBA commercial term | 40 | 2,746 | 24,361 | 27,147 | ||||||||||||
Trade finance | 11,521 | — | — | 11,521 | ||||||||||||
Total commercial and industrial loans | 94,524 | 60,661 | 66,089 | 221,274 | ||||||||||||
Other consumer loans | 3,435 | 22,436 | 50 | 25,921 | ||||||||||||
Loans held-for-investment | $ | 231,355 | $ | 512,429 | $ | 594,898 | $ | 1,338,682 | ||||||||
Loans with variable (floating) interest rates | $ | 208,127 | $ | 342,315 | $ | 328,306 | $ | 878,748 | ||||||||
Loans with predetermined (fixed) interest rates | 23,228 | 170,114 | 266,592 | 459,934 | ||||||||||||
Total | $ | 231,355 | $ | 512,429 | $ | 594,898 | $ | 1,338,682 | ||||||||
December 31, | ||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||||||
($ in thousands) | Allowance for Loan Losses | Percentage of Loans to Total Loans | Allowance for Loan Losses | Percentage of Loans to Total Loans | Allowance for Loan Losses | Percentage of Loans to Total Loans | Allowance for Loan Losses | Percentage of Loans to Total Loans | Allowance for Loan Losses | Percentage of Loans to Total Loans | ||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Commercial property | 6,216 | 53.1 | % | 6,366 | 55.5 | % | 5,904 | 57.8 | % | 3,615 | 57.5 | % | 3,797 | 56.9 | % | |||||||||||||||
Residential property | 1,152 | 17.5 | % | 833 | 14.2 | % | 674 | 13.6 | % | 527 | 15.3 | % | 691 | 15.7 | % | |||||||||||||||
SBA property | 1,225 | 9.0 | % | 1,124 | 11.1 | % | 801 | 10.2 | % | 822 | 10.4 | % | 942 | 10.3 | % | |||||||||||||||
Construction | 511 | 2.0 | % | 184 | 1.9 | % | 118 | 1.5 | % | 10 | 0.2 | % | 1 | — | % | |||||||||||||||
Total real estate loans | 9,104 | 81.6 | % | 8,507 | 82.7 | % | 7,497 | 83.1 | % | 4,974 | 83.4 | % | 5,431 | 82.9 | % | |||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||||||||||||
Commercial term | 1,525 | 7.6 | % | 1,513 | 6.5 | % | 1,828 | 6.3 | % | 1,408 | 6.1 | % | 2,146 | 6.3 | % | |||||||||||||||
Commercial lines of credit | 1,271 | 6.0 | % | 1,091 | 5.1 | % | 777 | 4.4 | % | 1,692 | 3.6 | % | 341 | 3.1 | % | |||||||||||||||
SBA commercial term | 909 | 2.0 | % | 909 | 2.6 | % | 990 | 2.6 | % | 1,000 | 3.0 | % | 1,180 | 3.0 | % | |||||||||||||||
Trade finance | 172 | 0.9 | % | 35 | 0.2 | % | 62 | 0.3 | % | 52 | 0.4 | % | 34 | 0.5 | % | |||||||||||||||
Total commercial and industrial loans | 3,877 | 16.5 | % | 3,548 | 14.4 | % | 3,657 | 13.6 | % | 4,152 | 13.1 | % | 3,701 | 12.9 | % | |||||||||||||||
Other consumer loans | 186 | 1.9 | % | 169 | 2.9 | % | 166 | 3.3 | % | 219 | 3.5 | % | 300 | 4.2 | % | |||||||||||||||
Total | 13,167 | 100.0 | % | 12,224 | 100.0 | % | 11,320 | 100.0 | % | 9,345 | 100.0 | % | 9,432 | 100.0 | % | |||||||||||||||
As of or For the Year Ended December 31, | ||||||||||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Balance at beginning of year | $ | 12,224 | $ | 11,320 | $ | 9,345 | $ | 9,432 | $ | 12,606 | ||||||||||
Charge-offs: | ||||||||||||||||||||
Real estate | 381 | 168 | — | 622 | 488 | |||||||||||||||
Commercial and industrial | 272 | 1,320 | 729 | 597 | 2,601 | |||||||||||||||
Other consumer | 356 | 88 | 38 | 131 | 114 | |||||||||||||||
Total charge-offs | 1,009 | 1,576 | 767 | 1,350 | 3,203 | |||||||||||||||
Recoveries on loans previously charged off | ||||||||||||||||||||
Real estate | 213 | 1 | 1 | 35 | 255 | |||||||||||||||
Commercial and industrial | 356 | 580 | 406 | 687 | 782 | |||||||||||||||
Other consumer | 152 | 72 | 52 | 128 | 89 | |||||||||||||||
Total recoveries | 721 | 653 | 459 | 850 | 1,126 | |||||||||||||||
Net charge-offs | 288 | 923 | 308 | 500 | 2,077 | |||||||||||||||
Provision (reversal) for loan losses | 1,231 | 1,827 | 2,283 | 413 | (1,097 | ) | ||||||||||||||
Balance at end of year | $ | 13,167 | $ | 12,224 | $ | 11,320 | $ | 9,345 | $ | 9,432 | ||||||||||
Loans held-for-investment: | ||||||||||||||||||||
Balance at end of year | $ | 1,338,682 | $ | 1,189,999 | $ | 1,031,112 | $ | 844,369 | $ | 732,520 | ||||||||||
Average balance | 1,254,512 | 1,099,725 | 942,037 | 792,840 | 670,374 | |||||||||||||||
Ratios: | ||||||||||||||||||||
Net charge-offs to average loans held-for-investment | 0.02 | % | 0.08 | % | 0.03 | % | 0.06 | % | 0.31 | % | ||||||||||
Allowance for loan losses to loans held-for-investment | 0.98 | % | 1.03 | % | 1.10 | % | 1.11 | % | 1.29 | % | ||||||||||
December 31, | ||||||||||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Real estate loans: | ||||||||||||||||||||
Commercial property | $ | — | $ | — | $ | — | $ | — | $ | 38 | ||||||||||
Residential property | 95 | 1,045 | — | — | 194 | |||||||||||||||
SBA property | 183 | — | — | 172 | 739 | |||||||||||||||
Total real estate loans | 278 | 1,045 | — | 172 | 971 | |||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||
Commercial term | — | — | 442 | — | 56 | |||||||||||||||
Commercial lines of credit | — | — | 1,500 | — | — | |||||||||||||||
SBA commercial term | — | 2 | 37 | 34 | 47 | |||||||||||||||
Total commercial and industrial loans | — | 2 | 1,979 | 34 | 103 | |||||||||||||||
Other consumer loans | 99 | 294 | 115 | 250 | 205 | |||||||||||||||
Total | $ | 377 | $ | 1,341 | $ | 2,094 | $ | 456 | $ | 1,279 | ||||||||||
December 31, | ||||||||||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Nonaccrual loans: | ||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||
Commercial property | $ | — | $ | 318 | $ | 57 | $ | 78 | $ | 534 | ||||||||||
Residential property | 302 | 730 | — | — | — | |||||||||||||||
SBA property | 540 | 1,810 | 602 | 998 | 1,109 | |||||||||||||||
Total real estate loans | 842 | 2,858 | 659 | 1,076 | 1,643 | |||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||
Commercial term | — | 4 | 169 | 706 | 3,905 | |||||||||||||||
Commercial lines of credit | — | 10 | 115 | — | 90 | |||||||||||||||
SBA commercial term | 203 | 338 | 866 | 554 | 723 | |||||||||||||||
Total commercial and industrial loans | 203 | 352 | 1,150 | 1,260 | 4,718 | |||||||||||||||
Other consumer loans | 16 | 24 | 39 | 36 | 91 | |||||||||||||||
Total nonaccrual loans | 1,061 | 3,234 | 1,848 | 2,372 | 6,452 | |||||||||||||||
Loans past due 90 days or more still on accrual | — | — | — | — | ||||||||||||||||
Total nonperforming loans | 1,061 | 3,234 | 1,848 | 2,372 | 6,452 | |||||||||||||||
Other real estate owned | — | 99 | 506 | — | — | |||||||||||||||
Total nonperforming assets | $ | 1,061 | $ | 3,333 | $ | 2,354 | $ | 2,372 | $ | 6,452 | ||||||||||
Nonperforming loans to loans held-for-investment | 0.08 | % | 0.27 | % | 0.18 | % | 0.28 | % | 0.88 | % | ||||||||||
Nonperforming assets to total assets | 0.06 | % | 0.23 | % | 0.19 | % | 0.23 | % | 0.72 | % | ||||||||||
December 31, | ||||||||||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Real estate loans: | ||||||||||||||||||||
Commercial property | $ | — | $ | 318 | $ | 435 | $ | 486 | $ | 531 | ||||||||||
SBA property | 315 | 1,373 | 1,540 | 1,899 | 2,177 | |||||||||||||||
Total real estate loans | 315 | 1,691 | 1,975 | 2,385 | 2,708 | |||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||
Commercial term | 68 | 199 | 458 | 1,189 | 4,692 | |||||||||||||||
Commercial lines of credit | — | 10 | 115 | — | — | |||||||||||||||
SBA commercial term | 180 | 367 | 311 | 512 | 782 | |||||||||||||||
Total commercial and industrial loans | 248 | 576 | 884 | 1,701 | 5,474 | |||||||||||||||
Other consumer loans | — | — | — | — | 104 | |||||||||||||||
Total TDRs | $ | 563 | $ | 2,267 | $ | 2,859 | $ | 4,086 | $ | 8,286 | ||||||||||
Total nonaccrual TDRs | $ | 131 | $ | 1,675 | $ | 663 | $ | 1,562 | $ | 5,229 | ||||||||||
($ in thousands) | Three Months or Less | Three to Six Months | Six Months to One Year | One to Three Years | Over Three Years | Total | ||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||
Time deposits less than $100,000 | $ | 38,772 | $ | 28,829 | $ | 74,628 | $ | 19,771 | $ | 2,289 | $ | 164,289 | ||||||||||||
Time deposits of $100,000 through $250,000 | 131,190 | 45,398 | 157,047 | 21,710 | — | 355,345 | ||||||||||||||||||
Time deposits of more than $250,000 | 144,225 | 40,224 | 84,502 | 12,288 | — | 281,239 | ||||||||||||||||||
Total | $ | 314,187 | $ | 114,451 | $ | 316,177 | $ | 53,769 | $ | 2,289 | $ | 800,873 | ||||||||||||
December 31, 2017 | ||||||||||||||||||||||||
Time deposits less than $100,000 | $ | 24,230 | $ | 18,357 | $ | 53,903 | $ | 56,294 | $ | 2,831 | $ | 155,615 | ||||||||||||
Time deposits of $100,000 or more and less than $250,000 | 56,502 | 42,986 | 112,071 | 17,350 | — | 228,909 | ||||||||||||||||||
Time deposits of $250,000 or more | 131,705 | 35,558 | 46,832 | 15,767 | — | 229,862 | ||||||||||||||||||
Total | $ | 212,437 | $ | 96,901 | $ | 212,806 | $ | 89,411 | $ | 2,831 | $ | 614,386 | ||||||||||||
Pacific City Financial Corporation | Pacific City Bank | Minimum Regulatory Requirements | Well Capitalized Requirements (Bank) | |||||||||
December 31, 2018 | ||||||||||||
Common tier 1 capital (to risk-weighted assets) | 16.28 | % | 16.19 | % | 4.5 | % | 6.5 | % | ||||
Total capital (to risk-weighted assets) | 17.31 | % | 17.21 | % | 8.0 | % | 10.0 | % | ||||
Tier 1 capital (to risk-weighted assets) | 16.28 | % | 16.19 | % | 6.0 | % | 8.0 | % | ||||
Tier 1 capital (to average assets) | 12.60 | % | 12.53 | % | 4.0 | % | 5.0 | % | ||||
December 31, 2017 | ||||||||||||
Common tier 1 capital (to risk-weighted assets) | 12.15 | % | 12.06 | % | 4.5 | % | 6.5 | % | ||||
Total capital (to risk-weighted assets) | 13.20 | % | 13.12 | % | 8.0 | % | 10.0 | % | ||||
Tier 1 capital (to risk-weighted assets) | 12.15 | % | 12.06 | % | 6.0 | % | 8.0 | % | ||||
Tier 1 capital (to average assets) | 10.01 | % | 9.94 | % | 4.0 | % | 5.0 | % | ||||
December 31, | ||||||||
($ in thousands) | 2018 | 2017 | ||||||
Commitments to extend credit | $ | 127,443 | $ | 109,835 | ||||
Standby letters of credit | 2,998 | 3,309 | ||||||
Commercial letters of credit | 477 | 233 | ||||||
Total | $ | 130,918 | $ | 113,377 | ||||
($ in thousands) | Within One Year | One to Three Years | Three to Five Years | Over Five Years | Total | |||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Time deposits | $ | 744,815 | $ | 53,769 | $ | 2,289 | $ | — | $ | 800,873 | ||||||||||
FHLB advances | 10,000 | 10,000 | 10,000 | — | 30,000 | |||||||||||||||
Operating leases | 2,446 | 4,335 | 3,413 | 1,104 | 11,298 | |||||||||||||||
Total | $ | 757,261 | $ | 68,104 | $ | 15,702 | $ | 1,104 | $ | 842,171 | ||||||||||
December 31, 2017 | ||||||||||||||||||||
Time deposits | $ | 522,144 | $ | 89,411 | $ | 2,831 | $ | — | $ | 614,386 | ||||||||||
FHLB advances | 10,000 | 20,000 | 10,000 | — | 40,000 | |||||||||||||||
Operating leases | 2,289 | 4,395 | 3,498 | 2,533 | 12,715 | |||||||||||||||
Total | $ | 534,433 | $ | 113,806 | $ | 16,329 | $ | 2,533 | $ | 667,101 | ||||||||||
December 31, | ||||||||||||
2018 | 2017 | |||||||||||
Simulated Rate Changes | Net Interest Income Sensitivity | Economic Value of Equity Sensitivity | Net Interest Income Sensitivity | Economic Value of Equity Sensitivity | ||||||||
+200 | 21.4 | % | 6.0 | % | 18.4 | % | 3.9 | % | ||||
+100 | 11.0 | % | 3.7 | % | 9.4 | % | 2.6 | % | ||||
-100 | (13.7 | )% | (5.9 | )% | (11.5 | )% | (4.0 | )% | ||||
Page | ||
December 31, | ||||||||
2018 | 2017 | |||||||
Assets | ||||||||
Cash and due from banks | $ | 24,121 | $ | 16,662 | ||||
Interest-bearing deposits in other financial institutions | 138,152 | 56,996 | ||||||
Total cash and cash equivalents | 162,273 | 73,658 | ||||||
Securities available-for-sale, at fair value | 146,991 | 129,689 | ||||||
Securities held-to-maturity, at amortized cost (fair value of $21,152 at December 31, 2018 and $20,997 at December 31, 2017) | 21,760 | 21,070 | ||||||
Total investment securities | 168,751 | 150,759 | ||||||
Loans held-for-sale | 5,781 | 5,297 | ||||||
Loans held-for-investment, net of deferred loan costs (fees) | 1,338,682 | 1,189,999 | ||||||
Allowance for loan losses | (13,167 | ) | (12,224 | ) | ||||
Net loans held-for-investment | 1,325,515 | 1,177,775 | ||||||
Premises and equipment, net | 4,588 | 4,723 | ||||||
Federal Home Loan Bank and other restricted stock, at cost | 7,433 | 6,589 | ||||||
Other real estate owned, net | — | 99 | ||||||
Deferred tax assets, net | 3,377 | 3,847 | ||||||
Servicing assets | 7,666 | 8,973 | ||||||
Accrued interest receivable and other assets | 11,644 | 10,279 | ||||||
Total assets | $ | 1,697,028 | $ | 1,441,999 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand | $ | 329,270 | $ | 319,026 | ||||
Savings, NOW and money market accounts | 313,610 | 317,878 | ||||||
Time deposits of $250,000 or less | 519,634 | 384,524 | ||||||
Time deposits of more than $250,000 | 281,239 | 229,862 | ||||||
Total deposits | 1,443,753 | 1,251,290 | ||||||
Federal Home Loan Bank advances | 30,000 | 40,000 | ||||||
Accrued interest payable and other liabilities | 12,979 | 8,525 | ||||||
Total liabilities | 1,486,732 | 1,299,815 | ||||||
Commitments and contingent liabilities | ||||||||
Preferred stock, 10,000,000 shares authorized, no par value, 0 issued and outstanding shares | — | — | ||||||
Common stock, 60,000,000 shares authorized, no par value; 15,977,754 and 13,417,899 shares issued and outstanding at December 31, 2018 and 2017, respectively | 171,067 | 125,430 | ||||||
Additional paid-in capital | 3,299 | 2,941 | ||||||
Retained earnings | 37,577 | 15,036 | ||||||
Accumulated other comprehensive loss, net | (1,647 | ) | (1,223 | ) | ||||
Total shareholders’ equity | 210,296 | 142,184 | ||||||
Total liabilities and shareholders’ equity | $ | 1,697,028 | $ | 1,441,999 | ||||
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Interest income: | ||||||||||||
Interest and fees on loans | $ | 76,837 | $ | 61,516 | $ | 50,058 | ||||||
Interest on tax-exempt investment securities | 159 | 186 | 147 | |||||||||
Interest on investment securities | 3,565 | 2,428 | 1,594 | |||||||||
Interest and dividends on other interest-earning assets | 3,138 | 1,137 | 796 | |||||||||
Total interest income | 83,699 | 65,267 | 52,595 | |||||||||
Interest expense: | ||||||||||||
Interest on deposits | 17,340 | 9,749 | 7,009 | |||||||||
Interest on borrowings | 611 | 348 | 5 | |||||||||
Total interest expense | 17,951 | 10,097 | 7,014 | |||||||||
Net interest income | 65,748 | 55,170 | 45,581 | |||||||||
Provision for loan losses | 1,231 | 1,827 | 2,283 | |||||||||
Net interest income after provision for loan losses | 64,517 | 53,343 | 43,298 | |||||||||
Noninterest income: | ||||||||||||
Service charges and fees on deposits | 1,500 | 1,377 | 1,457 | |||||||||
Loan servicing income | 2,160 | 2,446 | 2,159 | |||||||||
Gain on sale of loans | 5,560 | 9,000 | 8,912 | |||||||||
Gain on sale of securities available-for-sale | — | — | 8 | |||||||||
Other income | 1,234 | 1,071 | 1,083 | |||||||||
Total noninterest income | 10,454 | 13,894 | 13,619 | |||||||||
Noninterest expense: | ||||||||||||
Salaries and employee benefits | 24,473 | 22,829 | 19,944 | |||||||||
Occupancy and equipment | 4,992 | 4,426 | 4,337 | |||||||||
Professional fees | 2,176 | 1,842 | 1,997 | |||||||||
Marketing and business promotion | 2,010 | 1,647 | 1,449 | |||||||||
Data processing | 1,220 | 1,074 | 943 | |||||||||
Director fees and expenses | 942 | 757 | 708 | |||||||||
Loan related expenses | 353 | 437 | 341 | |||||||||
Regulatory assessments | 544 | 423 | 460 | |||||||||
Other expenses | 3,516 | 2,460 | 2,335 | |||||||||
Total noninterest expense | 40,226 | 35,895 | 32,514 | |||||||||
Income before income taxes | 34,745 | 31,342 | 24,403 | |||||||||
Income tax expense | 10,444 | 14,939 | 10,401 | |||||||||
Net income | $ | 24,301 | $ | 16,403 | $ | 14,002 | ||||||
Earnings per common share, basic | $ | 1.69 | $ | 1.22 | $ | 1.12 | ||||||
Earnings per common share, diluted | $ | 1.65 | $ | 1.21 | $ | 1.11 | ||||||
Weighted-average common shares outstanding, basic | 14,397,075 | 13,408,030 | 12,532,807 | |||||||||
Weighted-average common shares outstanding, diluted | 14,691,370 | 13,540,293 | 12,607,990 | |||||||||
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Net income | $ | 24,301 | $ | 16,403 | $ | 14,002 | ||||||
Other comprehensive loss: | ||||||||||||
Unrealized loss on securities available-for-sale arising during the year | (595 | ) | (778 | ) | (245 | ) | ||||||
Add: reclassification adjustment for net gain included in net income | — | — | 8 | |||||||||
Income tax benefit related to items of other comprehensive income | 171 | 328 | 102 | |||||||||
Total other comprehensive loss, net of tax | (424 | ) | (450 | ) | (135 | ) | ||||||
Total comprehensive income | $ | 23,877 | $ | 15,953 | $ | 13,867 | ||||||
Shareholders’ Equity | |||||||||||||||||||||||
Common Stock Outstanding Shares | Common stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total | ||||||||||||||||||
Balance at January 1, 2016 | 11,865,145 | $ | 96,074 | $ | 2,362 | $ | — | $ | (396 | ) | $ | 98,040 | |||||||||||
Comprehensive income (loss) | |||||||||||||||||||||||
Net income | — | — | — | 14,002 | — | 14,002 | |||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (135 | ) | (135 | ) | |||||||||||||||
Stock issued under private placement memorandum, net of expenses | 1,400,300 | 15,194 | — | — | — | 15,194 | |||||||||||||||||
Share-based compensation expense | — | — | 717 | — | — | 717 | |||||||||||||||||
Stock options exercised | 125,921 | 1,206 | (635 | ) | — | — | 571 | ||||||||||||||||
Retirement of fractional shares | (144 | ) | (2 | ) | — | — | — | (2 | ) | ||||||||||||||
Retroactive adjustment for stock dividend declared on December 13, 2016 | — | — | — | (1,380 | ) | — | (1,380 | ) | |||||||||||||||
Cash dividends declared on common stock | — | 12,622 | — | (12,622 | ) | — | — | ||||||||||||||||
Balance at December 31, 2016 | 13,391,222 | $ | 125,094 | $ | 2,444 | $ | — | $ | (531 | ) | $ | 127,007 | |||||||||||
Comprehensive income (loss) | |||||||||||||||||||||||
Net income | — | — | — | 16,403 | — | 16,403 | |||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (450 | ) | (450 | ) | |||||||||||||||
Share-based compensation expense | — | — | 699 | — | — | 699 | |||||||||||||||||
Stock options exercised | 26,811 | 338 | (202 | ) | — | — | 136 | ||||||||||||||||
Retirement of fractional shares | (134 | ) | (2 | ) | — | — | — | (2 | ) | ||||||||||||||
Cash dividends declared on common stock | — | — | — | (1,609 | ) | — | (1,609 | ) | |||||||||||||||
Reclassification of disproportionate tax effect | — | — | — | 242 | (242 | ) | — | ||||||||||||||||
Balance at December 31, 2017 | 13,417,899 | $ | 125,430 | $ | 2,941 | $ | 15,036 | $ | (1,223 | ) | $ | 142,184 | |||||||||||
Comprehensive income (loss) | |||||||||||||||||||||||
Net income | — | — | — | 24,301 | — | 24,301 | |||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (424 | ) | (424 | ) | |||||||||||||||
Stock issued under stock offering, net of expenses | 2,508,234 | 45,037 | — | — | — | 45,037 | |||||||||||||||||
Share-based compensation expense | — | — | 648 | — | — | 648 | |||||||||||||||||
Stock options exercised | 51,621 | 600 | (290 | ) | — | — | 310 | ||||||||||||||||
Cash dividends declared on common stock | — | — | — | (1,760 | ) | — | (1,760 | ) | |||||||||||||||
Balance at December 31, 2018 | 15,977,754 | $ | 171,067 | $ | 3,299 | $ | 37,577 | $ | (1,647 | ) | $ | 210,296 | |||||||||||
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Cash flows from operating activities | ||||||||||||
Net income | $ | 24,301 | $ | 16,403 | $ | 14,002 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation of premises and equipment | 1,269 | 1,120 | 1,030 | |||||||||
Amortization of net premiums on securities | 790 | 818 | 711 | |||||||||
Net accretion of deferred loan costs (fees) | (515 | ) | (559 | ) | (639 | ) | ||||||
Amortization of servicing assets | 2,765 | 2,233 | 2,055 | |||||||||
Provision for loan losses | 1,231 | 1,827 | 2,283 | |||||||||
Deferred tax expense | 641 | 1,733 | 39 | |||||||||
Share-based compensation | 648 | 699 | 717 | |||||||||
Gain on sale of securities | — | — | (8 | ) | ||||||||
Gain on sale of loans | (5,560 | ) | (9,000 | ) | (8,912 | ) | ||||||
Originations of loans held-for-sale | (99,864 | ) | (143,119 | ) | (145,446 | ) | ||||||
Proceeds from sales of and principal collected on loans held-for-sale | 106,282 | 151,972 | 176,313 | |||||||||
Change in accrued interest receivable and other assets | (1,362 | ) | (243 | ) | (4,733 | ) | ||||||
Change in accrued interest payable and other liabilities | 4,454 | 800 | 2,785 | |||||||||
Net cash provided by operating activities | 35,080 | 24,684 | 40,197 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchase of securities available-for-sale | (41,965 | ) | (66,866 | ) | (20,399 | ) | ||||||
Proceeds from sale of securities available-for-sale | — | — | 4,717 | |||||||||
Proceeds from maturities, calls, and paydowns of securities available-for-sale | 23,374 | 18,558 | 16,929 | |||||||||
Purchase of securities held-to-maturity | (2,075 | ) | (6,106 | ) | (2,611 | ) | ||||||
Proceeds from maturities, calls, and paydowns of securities held-to-maturity | 1,289 | 2,481 | 2,193 | |||||||||
Proceeds from sale of loans held-for-investment | 8,254 | — | — | |||||||||
Net increase in loans held-for-investment | (159,510 | ) | (165,154 | ) | (212,036 | ) | ||||||
Purchase of Federal Home Loan Bank stock | (844 | ) | (903 | ) | (764 | ) | ||||||
Proceeds from sale of other real estate owned | 102 | 291 | — | |||||||||
Purchases of premises and equipment | (1,140 | ) | (1,281 | ) | (1,981 | ) | ||||||
Net cash used in investing activities | (172,515 | ) | (218,980 | ) | (213,952 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Net increase in deposits | 192,463 | 159,478 | 152,373 | |||||||||
Proceeds from long-term Federal Home Loan Bank advances | — | 40,000 | — | |||||||||
Repayment of long-term Federal Home Loan Bank advances | (10,000 | ) | — | — | ||||||||
Stock options exercised | 310 | 134 | 569 | |||||||||
Stock issued under stock offering, net of expenses | 45,037 | — | 15,194 | |||||||||
Cash dividends paid on common stock | (1,760 | ) | (1,609 | ) | (1,380 | ) | ||||||
Net cash provided by financing activities | 226,050 | 198,003 | 166,756 | |||||||||
Net increase (decrease) in cash and cash equivalents | 88,615 | 3,707 | (6,999 | ) | ||||||||
Cash and cash equivalents at beginning of year | 73,658 | 69,951 | 76,950 | |||||||||
Cash and cash equivalents at end of year | $ | 162,273 | $ | 73,658 | $ | 69,951 | ||||||
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Interest paid | $ | 13,979 | $ | 9,465 | $ | 6,872 | ||||||
Income taxes paid | 7,568 | 12,056 | 11,582 | |||||||||
Supplemental disclosures of non-cash investment activities: | ||||||||||||
Loans transferred to loans held-for-sale | $ | 8,062 | $ | — | $ | 22,051 | ||||||
Loans transferred to other real estate owned | — | — | 506 | |||||||||
• | Pass - Loans classified as pass include non-homogeneous loans not meeting the risk ratings defined below and smaller, homogeneous loans not assessed on an individual basis. |
• | Special Mention - Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of repayment prospects for the loan or of the institution’s credit position at some future date. |
• | Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. |
• | Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. |
• | Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. |
• | Level 2: Significant observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. |
• | Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. |
• | Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. |
• | Level 2: Significant observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. |
• | Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. |
Fair Value Measurement Level | ||||||||||||||||
($ in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
December 31, 2018 | ||||||||||||||||
Securities available-for-sale: | ||||||||||||||||
U.S. government agency and U.S. government sponsored enterprise securities: | ||||||||||||||||
Mortgage-backed securities | $ | — | $ | 67,921 | $ | — | $ | 67,921 | ||||||||
Collateralized mortgage obligations | — | 55,649 | — | 55,649 | ||||||||||||
SBA loan pool securities | — | 22,632 | — | 22,632 | ||||||||||||
Municipal bonds | — | 789 | — | 789 | ||||||||||||
Total securities available-for-sale | — | 146,991 | — | 146,991 | ||||||||||||
Total assets measured at fair value on a recurring basis | $ | — | $ | 146,991 | $ | — | $ | 146,991 | ||||||||
Total liabilities measured at fair value on a recurring basis | $ | — | $ | — | $ | — | $ | — | ||||||||
December 31, 2017 | ||||||||||||||||
Securities available-for-sale: | ||||||||||||||||
U.S. government agency and U.S. government sponsored enterprise securities: | ||||||||||||||||
Mortgage-backed securities | $ | — | $ | 51,904 | $ | — | $ | 51,904 | ||||||||
Collateralized mortgage obligations | — | 50,485 | — | 50,485 | ||||||||||||
SBA loan pool securities | — | 24,925 | — | 24,925 | ||||||||||||
Municipal bonds | — | 2,375 | — | 2,375 | ||||||||||||
Total securities available-for-sale | — | 129,689 | — | 129,689 | ||||||||||||
Total assets measured at fair value on a recurring basis | $ | — | $ | 129,689 | $ | — | $ | 129,689 | ||||||||
Total liabilities measured at fair value on a recurring basis | $ | — | $ | — | $ | — | $ | — | ||||||||
Fair Value Measurement Level | ||||||||||||||||
($ in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
December 31, 2018 | ||||||||||||||||
Impaired loans: | ||||||||||||||||
SBA property | $ | — | $ | — | $ | 51 | $ | 51 | ||||||||
Total impaired loans | — | — | 51 | 51 | ||||||||||||
Total assets measured at fair value on a non-recurring basis | $ | — | $ | — | $ | 51 | $ | 51 | ||||||||
Total liabilities measured at fair value on a non-recurring basis | $ | — | $ | — | $ | — | $ | — | ||||||||
December 31, 2017 | ||||||||||||||||
Total assets measured at fair value on a non-recurring basis | $ | — | $ | — | $ | — | $ | — | ||||||||
Total liabilities measured at fair value on a non-recurring basis | $ | — | $ | — | $ | — | $ | — | ||||||||
Year Ended December 31, | ||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||||
Collateral dependent impaired loans: | ||||||||||||
Commercial property | $ | (53 | ) | $ | (49 | ) | $ | — | ||||
SBA property | (238 | ) | (440 | ) | (176 | ) | ||||||
Other real estate owned | 3 | (20 | ) | — | ||||||||
Net losses recognized | $ | (288 | ) | $ | (509 | ) | $ | (176 | ) | |||
Carrying Value | Fair Value | Fair Value Measurements | ||||||||||||||||||
($ in thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Interest-bearing deposits in other financial institutions | $ | 138,152 | $ | 138,152 | $ | 138,152 | $ | — | $ | — | ||||||||||
Securities available-for-sale | 146,991 | 146,991 | — | 146,991 | — | |||||||||||||||
Securities held-to-maturity | 21,760 | 21,152 | — | 21,152 | — | |||||||||||||||
Loans held-for-sale | 5,781 | — | — | 6,175 | — | |||||||||||||||
Net loans held-for-investment | 1,325,515 | 1,337,299 | — | — | 1,337,299 | |||||||||||||||
FHLB and other restricted stock | 7,433 | N/A | N/A | N/A | N/A | |||||||||||||||
Accrued interest receivable | 5,178 | 5,178 | 112 | 568 | 4,498 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 1,443,753 | $ | 1,425,023 | $ | — | $ | — | $ | 1,425,023 | ||||||||||
FHLB advances | 30,000 | 29,641 | — | 29,641 | — | |||||||||||||||
Accrued interest payable | 6,223 | 6,223 | — | 1 | 6,222 | |||||||||||||||
December 31, 2017 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Interest-bearing deposits in other financial institutions | $ | 56,996 | $ | 56,996 | $ | 56,996 | $ | — | $ | — | ||||||||||
Securities available-for-sale | 129,689 | 129,689 | — | 129,689 | — | |||||||||||||||
Securities held-to-maturity | 21,070 | 20,997 | — | 20,997 | — | |||||||||||||||
Loans held-for-sale | 5,297 | 5,813 | — | 5,813 | — | |||||||||||||||
Net loans held-for-investment | 1,177,775 | 1,177,539 | — | — | 1,177,539 | |||||||||||||||
FHLB and other restricted stock | 6,589 | N/A | N/A | N/A | N/A | |||||||||||||||
Accrued interest receivable | 4,251 | 4,251 | 25 | 533 | 3,693 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 1,251,290 | $ | 1,250,259 | $ | — | $ | — | $ | 1,250,259 | ||||||||||
FHLB advances | 40,000 | 39,778 | — | 39,778 | — | |||||||||||||||
Accrued interest payable | 2,251 | 2,251 | — | 60 | 2,191 | |||||||||||||||
($ in thousands) | Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | ||||||||||||
December 31, 2018 | ||||||||||||||||
Securities available-for-sale: | ||||||||||||||||
U.S. government agency and U.S. government sponsored enterprise securities: | ||||||||||||||||
Mortgage-backed securities | $ | 68,975 | $ | 177 | $ | (1,231 | ) | $ | 67,921 | |||||||
Collateralized mortgage obligations | 56,625 | 55 | (1,031 | ) | 55,649 | |||||||||||
SBA loan pool securities | 23,144 | — | (512 | ) | 22,632 | |||||||||||
Municipal bonds | 784 | 5 | — | 789 | ||||||||||||
Total securities available-for-sale | $ | 149,528 | $ | 237 | $ | (2,774 | ) | $ | 146,991 | |||||||
Securities held-to-maturity: | ||||||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities | $ | 16,659 | $ | — | $ | (602 | ) | $ | 16,057 | |||||||
Municipal bonds | 5,101 | 37 | (43 | ) | 5,095 | |||||||||||
Total securities held-to-maturity | $ | 21,760 | $ | 37 | $ | (645 | ) | $ | 21,152 | |||||||
December 31, 2017 | ||||||||||||||||
Securities available-for-sale: | ||||||||||||||||
U.S. government agency and U.S. government sponsored enterprise securities: | ||||||||||||||||
Mortgage-backed securities | $ | 52,565 | $ | 8 | $ | (669 | ) | $ | 51,904 | |||||||
Collateralized mortgage obligations | 51,459 | 34 | (1,008 | ) | 50,485 | |||||||||||
SBA loan pool securities | 25,231 | 17 | (323 | ) | 24,925 | |||||||||||
Municipal bonds | 2,376 | 1 | (2 | ) | 2,375 | |||||||||||
Total securities available-for-sale | $ | 131,631 | $ | 60 | $ | (2,002 | ) | $ | 129,689 | |||||||
Securities held-to-maturity: | ||||||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities | $ | 15,807 | $ | 8 | $ | (257 | ) | $ | 15,558 | |||||||
Municipal bonds | 5,263 | 181 | (5 | ) | 5,439 | |||||||||||
Total securities held-to-maturity | $ | 21,070 | $ | 189 | $ | (262 | ) | $ | 20,997 | |||||||
Securities Available-For-Sale | Securities Held-To-Maturity | |||||||||||||||
($ in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
Within one year | $ | — | $ | — | $ | 133 | $ | 133 | ||||||||
One to five years | — | — | 1,435 | 1,442 | ||||||||||||
Five to ten years | 784 | 789 | 1,216 | 1,217 | ||||||||||||
Greater than ten years | — | — | 2,317 | 2,303 | ||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and SBA loan pool securities | 148,744 | 146,202 | 16,659 | 16,057 | ||||||||||||
Total | $ | 149,528 | $ | 146,991 | $ | 21,760 | $ | 21,152 | ||||||||
Year Ended December 31, | ||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||||
Gross realized gains on sales and calls of securities available-for-sale | $ | — | $ | — | $ | 54 | ||||||
Gross realized losses on sales and calls of securities available-for-sale | — | — | 46 | |||||||||
Net realized gains (losses) on sales and calls of securities available-for-sale | $ | — | $ | — | $ | 8 | ||||||
Proceeds from sales and calls of securities available-for-sale | $ | 1,075 | $ | — | $ | 7,816 | ||||||
Tax expense on sales and calls of securities available-for-sale | $ | — | $ | — | $ | 3 | ||||||
Length of Time that individual securities have been in a continuous unrealized loss position | |||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||
($ in thousands) | Fair Value | Gross Unrealized Losses | Number of Securities | Fair Value | Gross Unrealized Losses | Number of Securities | Fair Value | Gross Unrealized Losses | Number of Securities | ||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||||||||||
U.S. government agency and U.S. government sponsored enterprise securities: | |||||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | 1,868 | $ | (6 | ) | 2 | $ | 41,845 | $ | (1,225 | ) | 48 | $ | 43,713 | $ | (1,231 | ) | 50 | |||||||||||||||
Collateralized mortgage obligations | 7,067 | (29 | ) | 5 | 34,943 | (1,002 | ) | 34 | 42,010 | (1,031 | ) | 39 | |||||||||||||||||||||
SBA loan pool securities | 2,809 | (7 | ) | 2 | 19,823 | (505 | ) | 18 | 22,632 | (512 | ) | 20 | |||||||||||||||||||||
Municipal bonds | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total securities available-for-sale | $ | 11,744 | $ | (42 | ) | 9 | $ | 96,611 | $ | (2,732 | ) | 100 | $ | 108,355 | $ | (2,774 | ) | 109 | |||||||||||||||
Securities held-to-maturity: | |||||||||||||||||||||||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities | $ | 2,022 | $ | (23 | ) | 1 | $ | 14,035 | $ | (579 | ) | 15 | $ | 16,057 | $ | (602 | ) | 16 | |||||||||||||||
Municipal bonds | 2,600 | (38 | ) | 8 | 497 | (5 | ) | 3 | 3,097 | (43 | ) | 11 | |||||||||||||||||||||
Total securities held-to-maturity | $ | 4,622 | $ | (61 | ) | 9 | $ | 14,532 | $ | (584 | ) | 18 | $ | 19,154 | $ | (645 | ) | 27 | |||||||||||||||
December 31, 2017 | |||||||||||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||||||||||
U.S. government agency and U.S. government sponsored enterprise securities: | |||||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | 31,876 | $ | (352 | ) | 29 | $ | 18,762 | $ | (317 | ) | 21 | $ | 50,638 | $ | (669 | ) | 50 | |||||||||||||||
Collateralized mortgage obligations | 31,191 | (454 | ) | 19 | 16,284 | (554 | ) | 19 | 47,475 | (1,008 | ) | 38 | |||||||||||||||||||||
SBA loan pool securities | 11,736 | (103 | ) | 9 | 8,798 | (220 | ) | 7 | 20,534 | (323 | ) | 16 | |||||||||||||||||||||
Municipal bonds | 1,115 | (2 | ) | 2 | — | — | — | 1,115 | (2 | ) | 2 | ||||||||||||||||||||||
Total securities available-for-sale | $ | 75,918 | $ | (911 | ) | 59 | $ | 43,844 | $ | (1,091 | ) | 47 | $ | 119,762 | $ | (2,002 | ) | 106 | |||||||||||||||
Securities held-to-maturity: | |||||||||||||||||||||||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities | $ | 7,997 | $ | (93 | ) | 6 | $ | 5,739 | $ | (164 | ) | 7 | $ | 13,736 | $ | (257 | ) | 13 | |||||||||||||||
Municipal bonds | 1,183 | (5 | ) | 5 | — | — | — | 1,183 | (5 | ) | 5 | ||||||||||||||||||||||
Total securities held-to-maturity | $ | 9,180 | $ | (98 | ) | 11 | $ | 5,739 | $ | (164 | ) | 7 | $ | 14,919 | $ | (262 | ) | 18 | |||||||||||||||
December 31, | ||||||||
($ in thousands) | 2018 | 2017 | ||||||
Real estate loans: | ||||||||
Commercial property | $ | 709,409 | $ | 662,031 | ||||
Residential property | 233,816 | 168,560 | ||||||
SBA property | 120,939 | 131,740 | ||||||
Construction | 27,323 | 23,117 | ||||||
Total real estate loans | 1,091,487 | 985,448 | ||||||
Commercial and industrial loans: | ||||||||
Commercial term | 102,133 | 77,402 | ||||||
Commercial lines of credit | 80,473 | 60,822 | ||||||
SBA commercial term | 27,147 | 30,376 | ||||||
Trade finance | 11,521 | 1,929 | ||||||
Total commercial and industrial loans | 221,274 | 170,529 | ||||||
Other consumer loans | 25,921 | 34,022 | ||||||
Loans held-for-investment | 1,338,682 | 1,189,999 | ||||||
Allowance for loan losses | (13,167 | ) | (12,224 | ) | ||||
Net loans held-for-investment | $ | 1,325,515 | $ | 1,177,775 | ||||
($ in thousands) | Real Estate | Commercial and Industrial | Consumer | Total | ||||||||||||
Balance at January 1, 2016 | $ | 4,974 | $ | 4,152 | $ | 219 | $ | 9,345 | ||||||||
Charge-offs | — | (729 | ) | (38 | ) | (767 | ) | |||||||||
Recoveries on loans previously charged off | 1 | 406 | 52 | 459 | ||||||||||||
Provision (reversal) for loan losses | 2,522 | (172 | ) | (67 | ) | 2,283 | ||||||||||
Balance at December 31, 2016 | 7,497 | 3,657 | 166 | 11,320 | ||||||||||||
Charge-offs | (168 | ) | (1,320 | ) | (88 | ) | (1,576 | ) | ||||||||
Recoveries on loans previously charged off | 1 | 580 | 72 | 653 | ||||||||||||
Provision for loan losses | 1,177 | 631 | 19 | 1,827 | ||||||||||||
Balance at December 31, 2017 | 8,507 | 3,548 | 169 | 12,224 | ||||||||||||
Charge-offs | (381 | ) | (272 | ) | (356 | ) | (1,009 | ) | ||||||||
Recoveries on loans previously charged off | 213 | 356 | 152 | 721 | ||||||||||||
Provision for loan losses | 765 | 245 | 221 | 1,231 | ||||||||||||
Balance at December 31, 2018 | $ | 9,104 | $ | 3,877 | $ | 186 | $ | 13,167 | ||||||||
($ in thousands) | Real Estate | Commercial and Industrial | Consumer | Total | ||||||||||||
December 31, 2018 | ||||||||||||||||
Allowance for loan losses: | ||||||||||||||||
Individually evaluated for impairment | $ | 1 | $ | 93 | $ | — | $ | 94 | ||||||||
Collectively evaluated for impairment | 9,103 | 3,784 | 186 | 13,073 | ||||||||||||
Total | $ | 9,104 | $ | 3,877 | $ | 186 | $ | 13,167 | ||||||||
Loans receivable: | ||||||||||||||||
Individually evaluated for impairment | $ | 1,156 | $ | 320 | $ | — | $ | 1,476 | ||||||||
Collectively evaluated for impairment | 1,090,331 | 220,954 | 25,921 | 1,337,206 | ||||||||||||
Total | $ | 1,091,487 | $ | 221,274 | $ | 25,921 | $ | 1,338,682 | ||||||||
December 31, 2017 | ||||||||||||||||
Allowance for loan losses: | ||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 208 | $ | — | $ | 208 | ||||||||
Collectively evaluated for impairment | 8,507 | 3,340 | 169 | 12,016 | ||||||||||||
Total | $ | 8,507 | $ | 3,548 | $ | 169 | $ | 12,224 | ||||||||
Loans receivable: | ||||||||||||||||
Individually evaluated for impairment | $ | 3,204 | $ | 614 | $ | — | $ | 3,818 | ||||||||
Collectively evaluated for impairment | 982,244 | 169,915 | 34,022 | 1,186,181 | ||||||||||||
Total | $ | 985,448 | $ | 170,529 | $ | 34,022 | $ | 1,189,999 | ||||||||
($ in thousands) | Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||
Commercial property | $ | 708,742 | $ | — | $ | 667 | $ | — | $ | 709,409 | ||||||||||
Residential property | 233,514 | — | 302 | — | 233,816 | |||||||||||||||
SBA property | 115,543 | 74 | 5,322 | — | 120,939 | |||||||||||||||
Construction | 24,325 | 2,998 | — | — | 27,323 | |||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||
Commercial term | 102,106 | — | 27 | — | 102,133 | |||||||||||||||
Commercial lines of credit | 79,874 | 599 | — | — | 80,473 | |||||||||||||||
SBA commercial term | 26,616 | — | 531 | — | 27,147 | |||||||||||||||
Trade finance | 11,521 | — | — | — | 11,521 | |||||||||||||||
Other consumer loans | 25,905 | — | 16 | — | 25,921 | |||||||||||||||
Total | $ | 1,328,146 | $ | 3,671 | $ | 6,865 | $ | — | $ | 1,338,682 | ||||||||||
December 31, 2017 | ||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||
Commercial property | $ | 656,711 | $ | 4,812 | $ | 508 | $ | — | $ | 662,031 | ||||||||||
Residential property | 167,830 | — | 730 | — | 168,560 | |||||||||||||||
SBA property | 126,069 | 2,487 | 3,184 | — | 131,740 | |||||||||||||||
Construction | 23,117 | — | — | — | 23,117 | |||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||
Commercial term | 77,227 | — | 175 | — | 77,402 | |||||||||||||||
Commercial lines of credit | 60,812 | — | 10 | — | 60,822 | |||||||||||||||
SBA commercial term | 30,003 | 4 | 369 | — | 30,376 | |||||||||||||||
Trade finance | 1,929 | — | — | — | 1,929 | |||||||||||||||
Other consumer loans | 33,997 | — | 25 | — | 34,022 | |||||||||||||||
Total | $ | 1,177,695 | $ | 7,303 | $ | 5,001 | $ | — | $ | 1,189,999 | ||||||||||
Still Accruing | ||||||||||||||||||||
($ in thousands) | 30 to 59 Days Past Due | 60 to 89 Days Past Due | 90 or More Days Past Due | Nonaccrual | Total Past Due and Nonaccrual | |||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||
Residential property | $ | 95 | $ | — | $ | — | $ | 302 | $ | 397 | ||||||||||
SBA property | 183 | — | — | 540 | 723 | |||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||
SBA commercial term | — | — | — | 203 | 203 | |||||||||||||||
Other consumer loans | 90 | 9 | — | 16 | 115 | |||||||||||||||
Total | $ | 368 | $ | 9 | $ | — | $ | 1,061 | $ | 1,438 | ||||||||||
December 31, 2017 | ||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||
Commercial property | $ | — | $ | — | $ | — | $ | 318 | $ | 318 | ||||||||||
Residential property | 949 | 96 | — | 730 | 1,775 | |||||||||||||||
SBA property | — | — | — | 1,810 | 1,810 | |||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||
Commercial term | — | — | — | 4 | 4 | |||||||||||||||
Commercial lines of credit | — | — | — | 10 | 10 | |||||||||||||||
SBA commercial term | 2 | — | — | 338 | 340 | |||||||||||||||
Other consumer loans | 262 | 32 | — | 24 | 318 | |||||||||||||||
Total | $ | 1,213 | $ | 128 | $ | — | $ | 3,234 | $ | 4,575 | ||||||||||
With No Allowance Recorded | With an Allowance Recorded | |||||||||||||||||||
($ in thousands) | Recorded Investment | Unpaid Principal Balance | Recorded Investment | Unpaid Principal Balance | Related Allowance | |||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||
Residential property | $ | 302 | $ | 303 | $ | — | $ | — | $ | — | ||||||||||
SBA property | 802 | 854 | 52 | 50 | 1 | |||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||
Commercial term | 68 | 69 | — | — | — | |||||||||||||||
SBA commercial term | 73 | 99 | 179 | 189 | 93 | |||||||||||||||
Total | $ | 1,245 | $ | 1,325 | $ | 231 | $ | 239 | $ | 94 | ||||||||||
December 31, 2017 | ||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||
Commercial property | $ | 316 | $ | 494 | $ | — | $ | — | $ | — | ||||||||||
Residential property | 730 | 730 | — | — | — | |||||||||||||||
SBA property | 2,158 | 3,639 | — | — | — | |||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||
Commercial term | 199 | 216 | — | — | — | |||||||||||||||
Commercial lines of credit | 10 | 20 | — | — | — | |||||||||||||||
SBA commercial term | 126 | 288 | 279 | 354 | 208 | |||||||||||||||
Total | $ | 3,539 | $ | 5,387 | $ | 279 | $ | 354 | $ | 208 | ||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2018 | 2017 | 2016 | ||||||||||||||||||||||
($ in thousands) | Average Recorded Investment | Interest Income | Average Recorded Investment | Interest Income | Average Recorded Investment | Interest Income | ||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||
Commercial property | $ | 199 | $ | — | $ | 396 | $ | 5 | $ | 460 | $ | 24 | ||||||||||||
Residential property | 281 | — | — | — | — | — | ||||||||||||||||||
SBA property | 1,245 | 22 | 1,982 | 35 | 2,391 | 88 | ||||||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||||||
Commercial term | 112 | 8 | 512 | 30 | 944 | 39 | ||||||||||||||||||
Commercial lines of credit | 5 | — | 431 | 39 | 477 | — | ||||||||||||||||||
SBA commercial term | 382 | 8 | 595 | 25 | 567 | 10 | ||||||||||||||||||
Total | $ | 2,224 | $ | 38 | $ | 3,916 | $ | 134 | $ | 4,839 | $ | 161 | ||||||||||||
Year Ended December 31, | ||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||||
Interest income that would have been recognized had impaired loans performed in accordance with their original terms | $ | 191 | $ | 294 | $ | 243 | ||||||
Less: interest income recognized on impaired loans on a cash basis | (38 | ) | (128 | ) | (120 | ) | ||||||
Interest income foregone on impaired loans | $ | 153 | $ | 166 | $ | 123 | ||||||
December 31, | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
($ in thousands) | Accruing | Nonaccrual | Total | Accruing | Nonaccrual | Total | ||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||
Commercial property | $ | — | $ | — | $ | — | $ | — | $ | 318 | $ | 318 | ||||||||||||
SBA property | 315 | — | 315 | 334 | 1,039 | 1,373 | ||||||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||||||
Commercial term | 68 | — | 68 | 195 | 4 | 199 | ||||||||||||||||||
Commercial lines of credit | — | — | — | — | 10 | 10 | ||||||||||||||||||
SBA commercial term | 49 | 131 | 180 | 63 | 304 | 367 | ||||||||||||||||||
Total | $ | 432 | $ | 131 | $ | 563 | $ | 592 | $ | 1,675 | $ | 2,267 | ||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||
($ in thousands) | Number of Loans | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | Number of Loans | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | ||||||||||||||||
Real estate loans: | ||||||||||||||||||||||
Commercial property | 1 | $ | 312 | $ | 301 | — | $ | — | $ | — | ||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||||
Commercial lines of credit | — | — | — | 1 | 120 | 115 | ||||||||||||||||
SBA commercial term | 3 | 274 | 241 | 2 | 28 | 25 | ||||||||||||||||
Total | 4 | $ | 586 | $ | 542 | 3 | $ | 148 | $ | 140 | ||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2018 | 2017 | 2016 | |||||||||||||||||||
($ in thousands) | Number of Loans | Recorded Investment at Date of Default | Number of Loans | Recorded Investment at Date of Default | Number of Loans | Recorded Investment at Date of Default | |||||||||||||||
Commercial and industrial loans: | |||||||||||||||||||||
SBA commercial term | — | — | — | — | 1 | 23 | |||||||||||||||
Total | — | $ | — | — | $ | — | 1 | $ | 23 | ||||||||||||
December 31, | ||||||||
($ in thousands) | 2018 | 2017 | ||||||
Real estate loans: | ||||||||
Residential property | $ | — | $ | 270 | ||||
SBA property | 5,481 | 3,857 | ||||||
Commercial and industrial loans: | ||||||||
SBA commercial term | 300 | 1,170 | ||||||
Total | $ | 5,781 | $ | 5,297 | ||||
December 31, | ||||||||
($ in thousands) | 2018 | 2017 | ||||||
Leasehold improvements | $ | 6,787 | $ | 6,612 | ||||
Furniture, fixtures and equipment | 2,992 | 3,093 | ||||||
Computer equipment | 2,033 | 1,968 | ||||||
Computer software | 1,262 | 748 | ||||||
Total premises and equipment | 13,074 | 12,421 | ||||||
Less: accumulated depreciation | (8,486 | ) | (7,698 | ) | ||||
Premises and equipment, net | $ | 4,588 | $ | 4,723 | ||||
($ in thousands) | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | |||||||||||||||||||||
Operating lease | $ | 2,446 | $ | 2,350 | $ | 1,985 | $ | 1,864 | $ | 1,549 | $ | 1,104 | $ | 11,298 | ||||||||||||||
December 31, | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
($ in thousands) | Residential Property | SBA Property | SBA Commercial Term | Residential Property | SBA Property | SBA Commercial Term | ||||||||||||||||||
Carrying amount | $ | 244 | $ | 6,349 | $ | 1,073 | $ | 308 | $ | 7,369 | $ | 1,296 | ||||||||||||
Fair value | $ | 298 | $ | 6,937 | $ | 1,206 | $ | 346 | $ | 7,991 | $ | 1,400 | ||||||||||||
Discount rates | 11.25 | % | 13.25 | % | 12.75 | % | 10.50 | % | 13.25 | % | 12.75 | % | ||||||||||||
Prepayment speeds | 25.00 | % | 14.12 | % | 13.55 | % | 25.60 | % | 10.50 | % | 10.60 | % | ||||||||||||
Weighted average remaining life | 25.2 years | 21.1 years | 7.4 years | 25.8 years | 20.3 years | 6.7 years | ||||||||||||||||||
Underlying loans being serviced | $ | 45,728 | $ | 367,856 | $ | 93,073 | $ | 53,253 | $ | 375,233 | $ | 99,672 | ||||||||||||
($ in thousands) | Residential Property | SBA Property | SBA Commercial Term | Total | ||||||||||||
Balance at January 1, 2016 | $ | 431 | $ | 5,890 | $ | 1,084 | $ | 7,405 | ||||||||
Additions | 110 | 2,278 | 564 | 2,952 | ||||||||||||
Amortization | (133 | ) | (1,476 | ) | (446 | ) | (2,055 | ) | ||||||||
Balance at December 31, 2016 | 408 | 6,692 | 1,202 | 8,302 | ||||||||||||
Additions | — | 2,353 | 551 | 2,904 | ||||||||||||
Amortization | (100 | ) | (1,676 | ) | (457 | ) | (2,233 | ) | ||||||||
Balance at December 31, 2017 | 308 | 7,369 | 1,296 | 8,973 | ||||||||||||
Additions | 22 | 1,166 | 270 | 1,458 | ||||||||||||
Amortization | (86 | ) | (2,186 | ) | (493 | ) | (2,765 | ) | ||||||||
Balance at December 31, 2018 | $ | 244 | $ | 6,349 | $ | 1,073 | $ | 7,666 | ||||||||
Year Ended December 31, | ||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||||
Balance at beginning of year | 99 | 506 | — | |||||||||
Additions | — | — | 506 | |||||||||
Sales | (210 | ) | (296 | ) | — | |||||||
Net change in valuation allowance | 111 | (111 | ) | — | ||||||||
Balance at end of year | $ | — | $ | 99 | $ | 506 | ||||||
Year Ended December 31, | ||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||||
Balance at beginning of year | 111 | — | — | |||||||||
Additions | — | 111 | — | |||||||||
Net direct write-downs and removal from sale | (111 | ) | — | — | ||||||||
Balance at end of year | $ | — | $ | 111 | $ | — | ||||||
Year Ended December 31, | ||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||||
Net (gain) loss on sales | (3 | ) | 5 | — | ||||||||
Operating expenses, net of rental income | — | — | — | |||||||||
Total | $ | (3 | ) | $ | 5 | $ | — | |||||
($ in thousands) | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | |||||||||||||||||||||
Time deposits of $250,000 or less | $ | 475,864 | $ | 37,787 | $ | 3,694 | $ | 1,778 | $ | 511 | $ | — | $ | 519,634 | ||||||||||||||
Time deposits of more than $250,000 | 268,951 | 12,288 | — | — | — | — | 281,239 | |||||||||||||||||||||
Total time deposits | $ | 744,815 | $ | 50,075 | $ | 3,694 | $ | 1,778 | $ | 511 | $ | — | $ | 800,873 | ||||||||||||||
($ in thousands) | 2019 | 2020 | 2021 | 2022 | 2023 | Total | ||||||||||||||||||
Fixed Rate | $ | 10,000 | $ | 10,000 | $ | — | $ | 10,000 | $ | — | $ | 30,000 | ||||||||||||
Variable Rate | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 10,000 | $ | 10,000 | $ | — | $ | 10,000 | $ | — | $ | 30,000 | ||||||||||||
As of or For the Year Ended December 31, | ||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||||
Weighted-average interest rate at end of year | 1.81 | % | 1.71 | % | — | % | ||||||
Average interest rate during the year | 1.75 | % | 1.71 | % | 0.42 | % | ||||||
Average balance | $ | 34,904 | $ | 20,384 | $ | 1,194 | ||||||
Maximum amount outstanding at any month-end | $ | 40,000 | $ | 40,000 | $ | — | ||||||
Balance at end of year | $ | 30,000 | $ | 40,000 | $ | — | ||||||
Year Ended December 31, | ||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||||
Unrealized loss on securities available-for-sale: | ||||||||||||
Balance at beginning of year | $ | (1,223 | ) | $ | (531 | ) | $ | (396 | ) | |||
Other comprehensive loss | ||||||||||||
Unrealized loss arising during the year | (595 | ) | (778 | ) | (245 | ) | ||||||
Reclassification adjustment from other comprehensive income | — | — | 8 | |||||||||
Tax effect of current period changes | 171 | 328 | 102 | |||||||||
Total other comprehensive loss | (424 | ) | (450 | ) | (135 | ) | ||||||
Reclassification of disproportionate tax effect to retained earnings | — | (242 | ) | — | ||||||||
Balance at end of year | $ | (1,647 | ) | $ | (1,223 | ) | $ | (531 | ) | |||
Year Ended December 31, | |||||||||
2018 | 2017 | 2016 | |||||||
Risk-free interest rate | 2.58 | % | 2.08 | % | — | % | |||
Expected term | 6.18 years | 6.50 years | 0.00 years | ||||||
Expected stock price volatility | 37.10 | % | 42.72 | % | — | % | |||
Dividend yield | 0.78 | % | 0.89 | % | — | % | |||
Year Ended December 31, | ||||||||||||
($ in thousands, except per share data) | 2018 | 2017 | 2016 | |||||||||
Intrinsic value of options exercised | $ | 601 | $ | 235 | $ | 597 | ||||||
Cash received from options exercised | 310 | 134 | 569 | |||||||||
Tax benefit from options exercised | 21 | 6 | 22 | |||||||||
Weighted-average estimated fair value per share of options granted | $ | 5.71 | $ | 5.08 | $ | — | ||||||
Year Ended December 31, 2018 | |||||||||||||
($ in thousands except per share data) | Number of Shares | Weighted-Average Exercise Price Per Share | Weighted-Average Contractual Term | Aggregated Intrinsic Value | |||||||||
Outstanding at beginning of year | 859,635 | $ | 8.84 | 7.10 years | $ | 6,155 | |||||||
Granted | 110,000 | $ | 15.36 | 10.00 years | |||||||||
Exercised | (51,621 | ) | $ | 5.99 | 5.29 years | ||||||||
Forfeited | (19,723 | ) | $ | 10.14 | 6.93 years | ||||||||
Balance at end of year | 898,291 | $ | 9.81 | 6.55 years | $ | 5,243 | |||||||
Exercisable at end of year | 551,017 | $ | 8.33 | 5.82 years | $ | 4,034 | |||||||
Year Ended December 31, 2018 | |||||||
Number of Shares | Weighted-Average Exercise Price Per Share | ||||||
Outstanding at beginning of year | 578,154 | $ | 9.96 | ||||
Granted | 110,000 | $ | 15.36 | ||||
Vested | (323,553 | ) | $ | 9.41 | |||
Forfeited | (17,327 | ) | $ | 10.24 | |||
Balance at end of year | 347,274 | $ | 12.17 | ||||
Year Ended December 31, | ||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||||
Current: | ||||||||||||
Federal | $ | 6,322 | $ | 9,924 | $ | 7,856 | ||||||
State | 3,481 | 3,282 | 2,506 | |||||||||
Total current income tax expense | 9,803 | 13,206 | 10,362 | |||||||||
Deferred: | ||||||||||||
Federal | 369 | 66 | (61 | ) | ||||||||
Adjustment of deferred tax assets for enacted changes in tax rate | 25 | 1,622 | — | |||||||||
State | 247 | 45 | 100 | |||||||||
Total deferred income tax expense | 641 | 1,733 | 39 | |||||||||
Total | $ | 10,444 | $ | 14,939 | $ | 10,401 | ||||||
Year Ended December 31, | |||||||||
2018 | 2017 | 2016 | |||||||
Statutory federal tax rate | 21.00 | % | 35.00 | % | 35.00 | % | |||
State franchise tax, net of federal tax benefit | 8.48 | % | 6.90 | % | 6.94 | % | |||
Share-based compensation | 0.24 | % | 0.49 | % | 0.66 | % | |||
Remeasurement from the Tax Cuts and Jobs Act | 0.07 | % | 5.17 | % | — | % | |||
Other items, net | 0.27 | % | 0.10 | % | 0.02 | % | |||
Effective income tax rate | 30.06 | % | 47.66 | % | 42.62 | % | |||
December 31, | ||||||||
($ in thousands) | 2018 | 2017 | ||||||
Deferred tax assets: | ||||||||
Allowance for loan losses | $ | 3,866 | $ | 3,587 | ||||
Share-based compensation | 264 | 209 | ||||||
Unrealized loss on investment securities | 744 | 574 | ||||||
State tax benefit | 739 | 694 | ||||||
Other | 529 | 614 | ||||||
Total deferred tax assets | 6,142 | 5,678 | ||||||
Deferred tax liabilities: | ||||||||
Depreciation on premises and equipment | 453 | 423 | ||||||
Loans held-for-sale market adjustment | 1,653 | 787 | ||||||
Deferred loan origination costs | 582 | 527 | ||||||
Other | 77 | 94 | ||||||
Total deferred tax liabilities | 2,765 | 1,831 | ||||||
Deferred tax assets, net | $ | 3,377 | $ | 3,847 | ||||
Year Ended December 31, | ||||||||||||
($ in thousands, except per share) | 2018 | 2017 | 2016 | |||||||||
Basic earnings per share: | ||||||||||||
Net income | $ | 24,301 | $ | 16,403 | $ | 14,002 | ||||||
Weighted-average common shares outstanding | 14,397,075 | 13,408,030 | 12,532,807 | |||||||||
Basic earnings per share | $ | 1.69 | $ | 1.22 | $ | 1.12 | ||||||
Diluted earnings per share: | ||||||||||||
Net income | $ | 24,301 | $ | 16,403 | $ | 14,002 | ||||||
Weighted-average commons shares outstanding | 14,397,075 | 13,408,030 | 12,532,807 | |||||||||
Diluted effect of stock options | 294,295 | 132,263 | 75,183 | |||||||||
Diluted weighted-average common shares outstanding | 14,691,370 | 13,540,293 | 12,607,990 | |||||||||
Diluted earnings per share | $ | 1.65 | $ | 1.21 | $ | 1.11 | ||||||
December 31, | ||||||||
($ in thousands) | 2018 | 2017 | ||||||
Commitments to extend credit | $ | 127,443 | $ | 109,835 | ||||
Standby letters of credit | 2,998 | 3,309 | ||||||
Commercial letters of credit | 477 | 233 | ||||||
Total | $ | 130,918 | $ | 113,377 | ||||
Actual | Minimum Capital Requirement | To Be Well Capitalized Under Prompt Corrective Provisions | |||||||||||||||||||
($ in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
December 31, 2018 | |||||||||||||||||||||
Pacific City Financial Corporation | |||||||||||||||||||||
Common tier 1 capital (to risk-weighted assets) | $ | 210,871 | 16.28 | % | $ | 58,273 | 4.5 | % | N/A | N/A | |||||||||||
Total capital (to risk-weighted assets) | 224,178 | 17.31 | % | 103,596 | 8.0 | % | N/A | N/A | |||||||||||||
Tier 1 capital (to risk-weighted assets) | 210,871 | 16.28 | % | 77,697 | 6.0 | % | N/A | N/A | |||||||||||||
Tier 1 capital (to average assets) | 210,871 | 12.60 | % | 66,930 | 4.0 | % | N/A | N/A | |||||||||||||
Pacific City Bank | |||||||||||||||||||||
Common tier 1 capital (to risk-weighted assets) | $ | 209,587 | 16.19 | % | $ | 58,272 | 4.5 | % | $ | 84,171 | 6.5 | % | |||||||||
Total capital (to risk-weighted assets) | 222,894 | 17.21 | % | 103,594 | 8.0 | % | 129,493 | 10.0 | % | ||||||||||||
Tier 1 capital (to risk-weighted assets) | 209,587 | 16.19 | % | 77,696 | 6.0 | % | 103,594 | 8.0 | % | ||||||||||||
Tier 1 capital (to average assets) | 209,587 | 12.53 | % | 66,929 | 4.0 | % | 83,661 | 5.0 | % | ||||||||||||
December 31, 2017 | |||||||||||||||||||||
Pacific City Financial Corporation | |||||||||||||||||||||
Common tier 1 capital (to risk-weighted assets) | $ | 142,370 | 12.15 | % | $ | 52,730 | 4.5 | % | N/A | N/A | |||||||||||
Total capital (to risk-weighted assets) | 154,715 | 13.20 | % | 93,766 | 8.0 | % | N/A | N/A | |||||||||||||
Tier 1 capital (to risk-weighted assets) | 142,370 | 12.15 | % | 70,306 | 6.0 | % | N/A | N/A | |||||||||||||
Tier 1 capital (to average assets) | 142,370 | 10.01 | % | 56,891 | 4.0 | % | N/A | N/A | |||||||||||||
Pacific City Bank | |||||||||||||||||||||
Common tier 1 capital (to risk-weighted assets) | $ | 141,361 | 12.06 | % | $ | 52,747 | 4.5 | % | $ | 76,189 | 6.5 | % | |||||||||
Total capital (to risk-weighted assets) | 153,705 | 13.12 | % | 93,723 | 8.0 | % | 117,153 | 10.0 | % | ||||||||||||
Tier 1 capital (to risk-weighted assets) | 141,361 | 12.06 | % | 70,329 | 6.0 | % | 93,772 | 8.0 | % | ||||||||||||
Tier 1 capital (to average assets) | 141,361 | 9.94 | % | 56,886 | 4.0 | % | 71,107 | 5.0 | % | ||||||||||||
Year Ended December 31, | ||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||||
Noninterest Income | ||||||||||||
In scope of Topic 606 | ||||||||||||
Service charges and fees on deposits: | ||||||||||||
Monthly service fees | $ | 108 | $ | 100 | $ | 105 | ||||||
Account analysis fees | 975 | 912 | 833 | |||||||||
Non-sufficient funds charges | 326 | 276 | 426 | |||||||||
Other deposit related fees | 91 | 89 | 93 | |||||||||
Total service charges and fees on deposits | 1,500 | 1,377 | 1,457 | |||||||||
Debit card fees | 221 | 203 | 189 | |||||||||
Gain (loss) on sale of other real estate owned | 3 | (20 | ) | — | ||||||||
Wire transfer fees | 472 | 431 | 383 | |||||||||
Other service charges | 243 | 208 | 192 | |||||||||
Total noninterest income in-scope of Topic 606 | $ | 2,439 | $ | 2,199 | $ | 2,221 | ||||||
December 31, | ||||||||
($ in thousands) | 2018 | 2017 | ||||||
Assets | ||||||||
Cash | $ | 1,254 | $ | 990 | ||||
Investment in Pacific City Bank | 209,012 | 141,174 | ||||||
Other assets | 49 | 20 | ||||||
Total assets | $ | 210,315 | $ | 142,184 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Other liabilities | 19 | — | ||||||
Total liabilities | 19 | — | ||||||
Total shareholders’ equity | 210,296 | 142,184 | ||||||
Total liabilities and shareholders’ equity | $ | 210,315 | $ | 142,184 | ||||
Year Ended December 31, | ||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||||
Income: | ||||||||||||
Dividends from subsidiary | $ | 1,694 | $ | 1,566 | $ | — | ||||||
Other income | — | — | 23 | |||||||||
Total income | 1,694 | 1,566 | 23 | |||||||||
Expense: | ||||||||||||
Other expense | 923 | 454 | 415 | |||||||||
Total expense | 923 | 454 | 415 | |||||||||
Income (loss) before taxes and equity in undistributed subsidiary income | 771 | 1,112 | (392 | ) | ||||||||
Income tax benefit | (277 | ) | (190 | ) | (167 | ) | ||||||
Income (loss) before equity in undistributed subsidiary income | 1,048 | 1,302 | (225 | ) | ||||||||
Equity in undistributed subsidiary income | 23,253 | 15,101 | 14,227 | |||||||||
Net income | 24,301 | 16,403 | 14,002 | |||||||||
Other comprehensive loss, net of tax | (424 | ) | (450 | ) | (135 | ) | ||||||
Comprehensive income | $ | 23,877 | $ | 15,953 | $ | 13,867 | ||||||
Year Ended December 31, | ||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||||
Cash flows from operating activities | ||||||||||||
Net income | $ | 24,301 | $ | 16,403 | $ | 14,002 | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
Equity in undistributed subsidiary income | (23,253 | ) | (15,101 | ) | (14,227 | ) | ||||||
Change in other assets | (29 | ) | 3 | (12 | ) | |||||||
Change in other liabilities | 19 | (28 | ) | 28 | ||||||||
Net cash provided by (used in) operating activities | 1,038 | 1,277 | (209 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||
Capital contribution to subsidiary | (44,361 | ) | — | (14,500 | ) | |||||||
Net cash used in investing activities | (44,361 | ) | — | (14,500 | ) | |||||||
Cash flows from financing activities: | ||||||||||||
Stock issued under stock offering, net of expenses | 45,037 | — | 15,194 | |||||||||
Stock options exercised | 310 | 134 | 569 | |||||||||
Cash dividends paid on common stock | (1,760 | ) | (1,609 | ) | (1,380 | ) | ||||||
Net cash provided by (used in) financing activities | 43,587 | (1,475 | ) | 14,383 | ||||||||
Net increase (decrease) in cash and cash equivalents | 264 | (198 | ) | (326 | ) | |||||||
Cash and cash equivalents at beginning of year | 990 | 1,188 | 1,514 | |||||||||
Cash and cash equivalents at end of year | $ | 1,254 | $ | 990 | $ | 1,188 | ||||||
Three Months Ended | ||||||||||||||||
($ in thousands, except per share) | March 31, 2018 | June 30, 2018 | September 30, 2018 | December 31, 2018 | ||||||||||||
Interest income | $ | 18,628 | $ | 20,344 | $ | 21,496 | $ | 23,231 | ||||||||
Interest expense | 3,334 | 4,462 | 4,780 | 5,375 | ||||||||||||
Net interest income | 15,294 | 15,882 | 16,716 | 17,856 | ||||||||||||
Provision for loan losses | 95 | 425 | 417 | 294 | ||||||||||||
Noninterest income | 3,362 | 2,273 | 2,580 | 2,239 | ||||||||||||
Noninterest expense | 9,631 | 10,940 | 9,520 | 10,135 | ||||||||||||
Income before income taxes | 8,930 | 6,790 | 9,359 | 9,666 | ||||||||||||
Income tax expense | 2,666 | 2,028 | 2,816 | 2,934 | ||||||||||||
Net income | $ | 6,264 | $ | 4,762 | $ | 6,543 | $ | 6,732 | ||||||||
Earnings per common share, basic | $ | 0.47 | $ | 0.35 | $ | 0.44 | $ | 0.42 | ||||||||
Earnings per common share, diluted | $ | 0.46 | $ | 0.35 | $ | 0.44 | $ | 0.41 | ||||||||
Three Months Ended | ||||||||||||||||
($ in thousands, except per share) | March 31, 2017 | June 30, 2017 | September 30, 2017 | December 31, 2017 | ||||||||||||
Interest income | $ | 14,617 | $ | 15,689 | $ | 17,090 | $ | 17,871 | ||||||||
Interest expense | 2,147 | 2,305 | 2,707 | 2,938 | ||||||||||||
Net interest income | 12,470 | 13,384 | 14,383 | 14,933 | ||||||||||||
Provision (reversal) for loan losses | (198 | ) | (274 | ) | 586 | 1,713 | ||||||||||
Noninterest income | 3,489 | 3,582 | 3,461 | 3,362 | ||||||||||||
Noninterest expense | 8,521 | 8,796 | 8,958 | 9,620 | ||||||||||||
Income before income taxes | 7,636 | 8,444 | 8,300 | 6,962 | ||||||||||||
Income tax expense | 3,238 | 3,584 | 3,494 | 4,623 | ||||||||||||
Net income | $ | 4,398 | $ | 4,860 | $ | 4,806 | $ | 2,339 | ||||||||
Earnings per common share, basic | $ | 0.33 | $ | 0.36 | $ | 0.36 | $ | 0.17 | ||||||||
Earnings per common share, diluted | $ | 0.33 | $ | 0.36 | $ | 0.35 | $ | 0.17 | ||||||||
(a)(2) | Financial Statement Schedule: All financial statements schedules have been omitted as the information is not required under the related instructions or is not applicable. |
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | |||||
3.1 | S-1 | 333-226208 | 3.1 | July 17, 2018 | ||||||
3.2 | S-1 | 333-226208 | 3.2 | July 17, 2018 | ||||||
3.3 | S-1 | 333-226208 | 3.3 | July 17, 2018 | ||||||
4.1 | S-1 | 333-226208 | 4.1 | July 17, 2018 | ||||||
10.1 | S-1 | 333-226208 | 10.1 | July 17, 2018 | ||||||
10.2 | S-1 | 333-226208 | 10.2 | July 17, 2018 | ||||||
10.3 | S-1 | 333-226208 | 10.3 | July 17, 2018 | ||||||
10.4 | S-1 | 333-226208 | 10.4 | July 17, 2018 | ||||||
10.5 | S-1 | 333-226208 | 10.5 | July 17, 2018 | ||||||
10.6 | S-1 | 333-226208 | 10.6 | July 17, 2018 | ||||||
11.1 | Reserved | |||||||||
12.1 | Reserved | |||||||||
21.1 | ||||||||||
23.1 | ||||||||||
31.1 | ||||||||||
31.2 | ||||||||||
32.1 | ||||||||||
32.2 | ||||||||||
101.INS | XBRL Instance Document* | |||||||||
101.SCH | XBRL Taxonomy Extension Schema Document* | |||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document* | |||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document* | |||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document* | |||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document* | |||||||||
Pacific City Financial Corporation | |||
Date: | March 18, 2019 | /s/ Henry Kim | |
Henry Kim | |||
President and Chief Executive Officer |
Signature/Name | Title | Date | |||
By: | /s/ Henry Kim | Director, President and Chief Executive Officer | March 18, 2019 | ||
Henry Kim | (Principal Executive Officer) | ||||
By: | /s/ Timothy Chang | Executive Vice President and Chief Financial Officer | March 18, 2019 | ||
Timothy Chang | (Principal Financial and Accounting Officer) | ||||
By: | /s/ Sang Young Lee | Chairman of the Board of Directors | March 18, 2019 | ||
Sang Young Lee | |||||
By: | /s/ Kijun Ahn | Director | March 18, 2019 | ||
Kijun Ahn | |||||
By: | /s/ Haeyoung Cho | Director | March 18, 2019 | ||
Haeyoung Cho | |||||
By: | /s/ Hong Kyun “Daniel” Park | Director | March 18, 2019 | ||
Hong Kyun “Daniel” Park | |||||
By: | /s/ Don Rhee | Director | March 18, 2019 | ||
Don Rhee | |||||
By: | /s/ Suk Won Youn | Director | March 18, 2019 | ||
Suk Won Youn |
1. | I have reviewed this Annual Report on Form 10-K of Pacific City Financial Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statement made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this reports; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and |
(d) | disclosed in this Report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the Audit Committee of the Registrant’s Board of Directors (or persons performing the equivalent functions): |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
Date: | March 18, 2019 | /s/ Henry Kim | |
Henry Kim | |||
President and Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this Annual Report on Form 10-K of Pacific City Financial Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statement made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this reports; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and |
(d) | disclosed in this Report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the Audit Committee of the Registrant’s Board of Directors (or persons performing the equivalent functions): |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
Date: | March 18, 2019 | /s/ Timothy Chang | |
Timothy Chang | |||
Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
(1) | the Report fully complies with the requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | March 18, 2019 | /s/ Henry Kim | |
Henry Kim | |||
President and Chief Executive Officer (Principal Executive Officer) |
(1) | the Report fully complies with the requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | March 18, 2019 | /s/ Timothy Chang | |
Timothy Chang | |||
Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
Document and Entity Information - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Mar. 11, 2019 |
Jul. 11, 2018 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | PACIFIC CITY FINANCIAL CORPORATION | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 16,008,651 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001423869 | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | true | ||
Entity Small Business | true | ||
Transition Period | true | ||
Entity Public Float | $ 236.9 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Securities held-to-maturity, fair value | $ 21,152 | $ 20,997 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, issued (in shares) | 15,977,754 | 13,417,899 |
Common stock, outstanding (in shares) | 15,977,754 | 13,417,899 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Net income | $ 24,301 | $ 16,403 | $ 14,002 |
Other comprehensive loss: | |||
Income tax benefit related to items of other comprehensive income | 171 | 328 | 102 |
Total other comprehensive loss, net of tax | (424) | (450) | (135) |
Total comprehensive income | 23,877 | 15,953 | 13,867 |
Parent | |||
Other comprehensive loss: | |||
Unrealized loss on securities available-for-sale arising during the year | (595) | (778) | (245) |
Add: reclassification adjustment for net gain included in net income | $ 0 | $ 0 | $ 8 |
Basis of Presentation and Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Nature of Operations Pacific City Financial Corporation is a bank holding company whose subsidiary is Pacific City Bank. The Bank is a single operating segment that operates 11 full-service branches in Los Angeles and Orange counties, California, one full-service branch in each of Fort Lee, New Jersey and Bayside, New York, and 10 LPOs in Irvine, Artesia and Los Angeles, California; Annandale, Virginia; Chicago, Illinois; Atlanta, Georgia; Bellevue, Washington; Aurora, Colorado; Carrollton, Texas; and New York, New York. The Bank offers a broad range of loans, deposits, and other products and services predominantly to small and middle market businesses and individuals. Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary as of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016. Significant inter-company accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, all references to the Company include its wholly owned subsidiaries. The accounting and reporting polices of the Company are based upon GAAP and conform to predominant practices within the financial services industry. Significant accounting policies followed by the Company are presented below. Certain prior period amounts have been reclassified to conform to the current year’s presentation. These reclassifications had no impact on the Company’s consolidated statements of financial condition or operations. Use of Estimates in the Preparation of Financial Statements The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates are subject to change and such change could have a material effect on the consolidated financial statements. Actual results may differ from those estimates. Significant Accounting Policies Cash and Cash Equivalents Cash and cash equivalents include cash on hand, cash items in transit, cash due from the Federal Reserve Bank and other financial institutions, and federal funds sold with original maturities less than 90 days. Banking regulations require that banks maintain a percentage of their deposits as reserves in cash or on deposit with the Federal Reserve Bank. The reserve and clearing requirement balance was $0 at December 31, 2018 and 2017. Investment Securities Investment securities are classified as held-to-maturity or available-for-sale at the time of purchase based upon the intent of management, liquidity and capital requirements, regulatory limitations and other relevant factors. Debt securities are classified as held-to-maturity when management has the positive intent and ability to hold to maturity. Debt securities are classified as available-for-sale when they might be sold before maturity. Securities held-to-maturity are carried at amortized cost and securities available-for-sale are carried at fair value with unrealized gains and losses, net of taxes, recorded in other comprehensive income. Gains and losses on sales of securities are determined using the specific identification method. Net realized gains or losses on available-for-sale securities are included in noninterest income and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income. Amortization of premiums and accretion of discounts are included in interest income using the interest method. Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: OTTI related to credit loss, which is recognized as a charge against earnings, and OTTI related to other factors, which is recognized in other comprehensive income, net of tax. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Loans Held-For-Sale The Company originates SBA loans, and certain residential property and commercial property loans with the intention for sale in the secondary market. The Company records the guaranteed portion of SBA loans and these residential property and commercial property loans held-for-sale at the lower of cost or fair value on an aggregate basis. Fair value is based on commitments on hand from investors or prevailing market prices. Direct loan origination fees and costs on the loans are not amortized and are included in the determination of gains or losses from the sale of the related loans. A valuation allowance is established if the fair value of such loans is lower than their cost, with a corresponding charge to noninterest income. When the Company changes its intent to hold loans for investment, the loans are transferred to held-for-sale at lower of cost or fair value at the time of transfer, as determined on an individual loan level with charges made to allowance for loan losses when the fair value is lower than the cost. Amortization of deferred fees and cost on transferred loans is ceased and are included in the determination of gains or losses on sale of the related loans. Subsequent decreases in fair value, if any, are recognized through a valuation allowance with charges made to noninterest income. If a determination is made that a loan held-for-sale cannot be sold in the foreseeable future, it is transferred to loans held-for-investment at lower of cost or fair value on the transfer date with a charge made to noninterest income when the fair value is lower than the cost. Realized gains and losses from sales of loans are calculated using specific identification method and included in noninterest income. For sales of guaranteed portion of SBA and certain residential property loans, the loan servicing rights are retained. Loans Held-For-Investment Loans held-for-investment that management has the intent and ability to hold for the foreseeable future are reported at their outstanding unpaid principal balances, net of any charge-offs, deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans. Loan origination fees and certain direct origination costs are deferred and recognized in interest income using the level-yield method over the life of the loan. Interest is accrued and credited to income as earned only if deemed collectible. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Accrual of interest on loans is discontinued when principal or interest payment is 90 days past due based on the contractual terms of the loan or when, in the opinion of management, there is reasonable doubt as to collectability. When loans are placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest payments that are subsequently received are applied as a reduction to the remaining principal balance as long as concern exists as to the collectability of the principal. Interest accruals are resumed on such loans only when the loans are brought current with respect to interest and principal and when, in the judgment of management, all principal and interest on the loans are expected to be fully collectable. Loan portfolio segments identified by the Company include: real estate (commercial property, residential property, SBA property and construction), commercial and industrial (commercial term, commercial lines of credit, SBA commercial term and trade finance), and other consumer loans. Risks associated with the Company’s real estate loans include a decline in the economy and a reduction in real estate values in the Company’s primary markets, an increase in market interest rates, increased competition in pricing and loan structure, and environmental risks. Risks associated with the Company’s commercial and industrial loans include a decline in the economy in the primary markets, an increase in market interest rates, and deterioration of a borrower’s or guarantor’s financial capabilities. Risk associated with the Company’s consumer loans include the same risks associated with the commercial and industrial loans, but also includes risks related to consumer bankruptcy laws which allow consumers to discharge certain debts. The Company classifies loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, collateral adequacy, credit documentation, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans in regards to credit risk. This analysis typically includes non-homogeneous loans, such as commercial property and commercial and industrial loans, and is performed on an ongoing basis as new information is obtained. The Company uses the following definitions for risk ratings:
Allowance for Loan Losses Allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the loan is uncollectible. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. Amounts are charged-off when available information confirms that specific loans or portions thereof, are uncollectible. Generally, loans are charged off immediately when it is determined that advances to the borrower are in excess of the calculated current fair value of the collateral and if a borrower is deemed incapable of repayment of unsecured debt, there is little or no prospect for near term improvement and no realized strengthening action of significance pending. Other consumer loans are charged off based on delinquency, typically 120 days for closed loans and 180 days for open-end loans, or earlier when it is determined that the loan is uncollectible due to a triggering event, such as bankruptcy, fraud, or death. This methodology for determining charge-offs is consistently applied to each segment. The allowance consists of general reserves (collectively evaluated for impairment) and specific reserves (individually evaluated for impairment). General reserves cover non-impaired loans and are based on historical loss rates over the most recent four years for each portfolio segment, adjusted for the effects of qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the portfolio segment’s historical loss experience. The Company utilizes a migration analysis to measure actual historical loss experience, with the resulting historical loss rate adjusted for any applicable loss emergence period factors serving as the base loss rate to estimate the amount of appropriate loss reserve. Qualitative factors include consideration of the following: changes in lending policies and procedures; changes in economic conditions; changes in the nature and volume of the portfolio; changes in the experience, ability, and depth of lending management and other relevant staff; changes in the volume and severity of past due, nonaccrual, and other adversely graded loans; changes in the loan review system; changes in the value of the underlying collateral for collateral-dependent loans; concentrations of credit and the effect of other external factors such as competition and legal and regulatory requirements. Specific reserves relate to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered in determining impairment include payment status, collateral value, and the probability of collecting all amounts when due. Measurement of impairment is based on the expected future cash flows of an impaired loan, which are to be discounted at the loan’s effective interest rate, or measured by reference to an observable market value, if one exists, or the fair value of the collateral for a collateral-dependent loan. The Company selects the measurement method on a loan-by-loan basis, with the exception of collateral-dependent loans for which the most viable source of repayment is the continued operation of the collateral or liquidation of the collateral. The impairment for these loans are measured at the fair value of the collateral, less estimated selling cost. If a loan is impaired, the loan is reported, net of the allocated allowance, at the present value of estimated future cash flows using the loan’s effective interest rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments received on impaired loans are first applied to principal, then recognized as income based on existing methods to recognize income on nonaccrual loans. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered TDRs and classified as impaired with measurement of impairment as described above. Premises and Equipment Premises and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives, which ranges from three to seven years for furniture and equipment. Leasehold improvements are amortized using the straight-line method over the estimated useful lives of the improvements or the remaining lease term, whichever is shorter. Expenditures for betterments or major repairs are capitalized and those for ordinary repairs and maintenance are charged to operations as part of occupancy and equipment expense as incurred. Federal Home Loan Bank and Other Restricted Stock The Bank is a member of the FHLB and Pacific Coast Bankers’ Bancshares (“PCBB”) system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB and PCBB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on the ultimate recovery of par value. Both cash and stock dividends are reported as income. Other Real Estate Owned OREO represents properties acquired through foreclosure or other proceedings. OREO is held-for-sale and is recorded at the lower of the recorded amount of the loan or fair value of the properties, less estimated costs of disposal. Any write-down to fair value at the time of transfer to OREO is charged to allowance for loan losses. Property is evaluated regularly to ensure the recorded amount is supported by its current fair value and valuation allowances to reduce the carrying amounts to fair value less estimated costs to dispose are recorded as necessary. Additions to or reductions from valuation allowances are recorded in noninterest expense. Servicing Assets Servicing assets are recognized when servicing rights are retained from the sale of loans, such as sales of guaranteed portion of SBA and certain residential property, and are initially recorded at fair value. Fair value is calculated as the present value of estimated future cash flows from the servicing rights based on current market sources, such as the cost to service, discount rates, and prepayment speeds. The Company validates these assumptions with published industry data. Servicing assets are amortized into noninterest income over the expected life of the underlying loans. Servicing assets are evaluated for impairment based on the fair value of the servicing rights as compared to the carrying amount. Impairment is determined by stratifying servicing rights into groupings based on predominant risk characteristics, such as interest rate, loan type, and investor type. For purposes of measuring impairment, the Company has identified each servicing asset with the underlying loan being serviced. A valuation allowance is recorded when the fair value is below the carrying amount of the asset. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the valuation allowance may be recorded as an increase to income. The fair values of servicing assets are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and changes in discount rates. Servicing income as reported on the income statement consists of fees earned for servicing loans, net of the amortization of servicing assets and changes in the valuation allowance. The servicing fees are based on a contractual percentage of the outstanding principal and recorded as income when earned. Investment in Qualified Affordable Housing Projects The Company has invested in a limited partnership that operates qualified affordable housing projects for lower income tenants in California. The Company accounts for this investment under the proportional amortization method and the amortization expense is presented as a component of the income tax provision. Return of this investment is generated primarily through allocated federal tax credits and other tax benefits. The recorded investment amount was $2.4 million and $2.7 million, respectively, and unfunded commitments was $831 thousand and $2.0 million, respectively, at December 31, 2018 and 2017. The recorded investment amount is included in Accrued Interest Receivable and Other Assets and unfunded commitment is included in Accrued Interest Payable and Other Liabilities on the Consolidated Statements of Financial Condition. As components of income tax expense, the Company recognized amortizations of $283 thousand, $219 thousand and $54 thousand, respectively, and federal tax credits and other benefits of $290 thousand, $229 thousand and $59 thousand, respectively, for the years ended December 31, 2018, 2017 and 2016. The Company determined that there were no events or changes in circumstances indicating that it is more likely than not that the carrying amount of the investment will not be realized. Therefore, no impairment was recorded at December 31, 2018 and 2017. Earnings Per Common Share Basic earnings per common share (“EPS”) excludes dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if options or other contracts to issue common stock were exercised or converted into common stock, or resulted in the issuance of common stock that then shared in the earnings of the entity. Transfer of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Share-Based Compensation The Company recognizes the cost of employee services received in exchange for awards of stock options, or other equity instruments, based on the grant date fair value of those awards. This cost is recognized in income over the period which an employee is required to provide services in exchange for the award, generally the vesting period. See Note 11 for additional information on the Company’s stock option plan. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established to reduce the deferred tax asset to the level at which it is more likely than not that the tax asset or benefits will be realized. Realization of tax benefits of deductible temporary differences and operating loss carry-forward depends on having sufficient taxable income of an appropriate character within the carry-forward periods. The Company has adopted FASB ASC 740-10, Income Taxes - Overall that clarifies the accounting for uncertainty in tax positions taken or expected to be taken on a tax return and provides that the tax effects from an uncertain tax position can be recognized in the consolidated financial statements only if, based on its merits, the position is more likely than not to be sustained on audit by taxing authorities. Interest and penalties related to uncertain tax positions are recorded as part of income tax expense. The Company elected to early adopt FASB Accounting Standard Update (“ASU”) 2018-02, Income Statement - Reporting Comprehensive Income as of and for the year ended December 31, 2017, which allows entities to reclassify the stranded tax effects as a result of applying the Tax Cuts and Jobs Act from accumulated other comprehensive income (loss) to retained earnings. As a result of the adoption, the Company recorded a decrease in accumulated other comprehensive income of $242 thousand and an increase in retained earnings for the same amount to eliminate the stranded tax effects at that date from the reduction in the federal statutory tax rate that was enacted in December 22, 2017 and became effective January 1, 2018. Commitments and Contingencies In the ordinary course of business, the Company enters into off-balance sheet financial instruments consisting of commitments to extend credit, commercial letters of credit, and standby letters of credit as described in Note 15. Such financial instruments are recorded in the consolidated financial statements when they are funded or related fees are incurred or received. Fair Value Measurement Fair value is the exchange price that would be received for an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Current accounting guidance establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value:
See Note 2 for more information and disclosures relating to the Company’s fair value measurements. Adopted Accounting Pronouncements During the year ended December 31, 2018, the following accounting pronouncements applicable to the Company were adopted: In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” This ASU clarifies principles for recognizing revenue from contracts with customers and supersedes current guidelines, Topic 605 - “Revenue Recognition,” and most industry specific guidance. The principal of this ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this principle, an entity should apply the following “Five-steps Model” prescribed in ASC 606: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. This ASU also specifies the accounting for some costs to obtain or fulfill a contract with a customer. The amended disclosure guidance requires sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This ASU, as amended by ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12, ASU 2016-20, ASU 2017-13, and ASU 2017-14, is effective for interim and annual periods beginning after December 15, 2017, and entities have the option of using either a modified retrospective or full retrospective approach for the adoption. The Company adopted this guidance on January 1, 2018 utilizing the modified retrospective approach. The Company’s source of revenue is net interest income and noninterest income. The scope of this ASU explicitly excludes net interest income and other revenues from transactions involving financial instruments, such as loans and securities. The Company identified and reviewed fees and service charges on deposit accounts and income and expense from other real estate owned (“OREO”), which are within the scope of this ASU. Based on this analysis performed, the Company concluded this ASU did not have significant changes to the method in which the Company recognizes these revenue streams. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. See note 17 for additional information. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurements of Financial Assets and Financial Liabilities.” The amendments in this ASU require equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; simplifies the impairment assessment of equity investments by requiring a qualitative assessment; eliminates the requirement for public business entities to disclose methods and assumptions for financial instruments measured at amortized cost on the statement of financial condition; requires the exit price notion to be used when measuring the fair value of financial instruments for disclosure purposes; requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability; requires separate presentation of financial assets and liabilities by measurement category; and certain other requirements. This ASU became effective for fiscal years beginning after December 15, 2017. The Company adopted this guidance on January 1, 2018 and the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. See note 2 for additional information. Recent Accounting Pronouncements Not Yet Adopted The following are recently issued accounting pronouncements applicable to the Company that have not yet been adopted: In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases,” and ASU 2018-11, “Leases Topic 842, Targeted Improvements,” to provide additional clarification, implantation, and transition guidance on certain aspects of ASU 2016-02. The amendments in ASU 2016-02 require lessees to recognize lease assets and lease liabilities for both leases classified as operating leases and finance leases, except leases with a term of 12 months or less where lessees are permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. For leases with a term of greater than 12 months, lessees are required to recognize a liability to make lease payments and a right-of-use assets representing its right to use the underlying asset for the lease term measured at the present value of the lease payments. ASU 2016-02 and ASU 2018-10 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for a public business entity. Under ASU 2018-11, an additional transition option was provided that would allow entities to not apply the new guidance in the comparative periods they present in their financial statements in the year of adoption. Under this optional transition method, entities will be allowed to continue using and presenting leases under ASC 840 for prior years comparative periods and then prospectively adopt ASC 842 on January 1, 2019, recognizing a cumulative-effect adjustment to the opening balance of retained earnings. The Company adopted this guidance in the first quarter of 2019 using the optional transition method with a cumulative effect adjustment to retained earnings without restating prior period financial statements for comparable amounts. The Company completed its review of its existing lease contracts and service contracts that may include embedded leases, and is in the process of updating processes and internal controls for leasing activities. The Company recognized right-of-use lease assets and liabilities of approximately $9.6 million and $10.6 million, respectively, at the date of adoption. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements other than the recognition of right-of-use lease assets and liabilities. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326).” The amendments in this ASU require that entities change the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model. Under this model, entities will estimate credit losses over the entire contractual term of the instrument from the date of initial recognition of that instrument. It includes financial assets such as loan receivables, held-to-maturity debt securities, net investment in leases that are not accounted for at fair value through net income, and certain off-balance sheet credit exposures. This ASU is effective for public business entities that are SEC filers for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has formed a committee, developed an implementation plan, and engaged a software vendor to assist the Company to build a model. The Company is in the process of completing a readiness assessment and is engaged in the implementation phase of the project. The Company is working on: (i) developing a new expected loss model with supportable assumptions; (ii) identifying data, reporting, and disclosure gaps; (iii) assessing updates to accounting and credit risk policies; and (iv) documenting new processes and controls. Based on the Company’s initial assessment of this ASU, the Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses which could potentially have a material impact on its consolidated financial statements as of the beginning of the first reporting period in which this ASU is effective. In March 2017, the FASB issued ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” The amendments in this ASU shorten the amortization period for certain callable debt securities acquired at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount, which continue to be amortized to maturity. Public business entities must prospectively apply the amendments in this ASU to annual periods beginning after December 15, 2018, including interim periods. The Company concluded that the adoption of this guidance will not have a material impact on its consolidated financial statements. |
Fair Value Measurements |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value including a three-level valuation hierarchy, and expands disclosures about fair value measurements. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (i.e. an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The three-level fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are defined as follows:
Fair value is measured on a recurring basis for certain assets and liabilities in which fair value is the primary basis of accounting. Additionally, fair value is used on a non-recurring basis to evaluate certain assets or liabilities for impairment or for disclosure purposes. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company records securities available-for-sale at fair value on a recurring basis. Certain other assets, such as loans held-for-sale, impaired loans, servicing assets and OREO are recorded at fair value on a non-recurring basis. Non-recurring fair value measurements typically involve assets that are periodically evaluated for impairment and for which any impairment is recorded in the period in which the re-measurement is performed. The following is a description of valuation methodologies used for assets and liabilities recorded at fair value: Investment securities: The fair values of securities available-for-sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1) or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2). Management reviews the valuation techniques and assumptions used by the provider and determines that the provider uses widely accepted valuation techniques based on observable market inputs appropriate for the type of security being measured. Securities held-to-maturity are not measured at fair value on a recurring basis. Loans held-for-sale: The Company records SBA loans held-for-sale, residential property loans held-for-sale and certain non-residential real estate loans held-for-sale at the lower of cost or fair value, on an aggregate basis. The Company obtains fair values from a third party independent valuation service provider. Loans held-for-sale accounted for at the lower of cost or fair value are considered to be recognized at fair value when they are recorded at below cost, on an aggregate basis, and are classified as Level 2. Impaired loans: The Company records fair value adjustments on certain loans that reflect (i) partial write-downs, through charge-offs or specific reserve allowances, that are based on the current appraised or market-quoted value of the underlying collateral or (ii) the full charge-off of the loan carrying value. In some cases, the properties for which market quotes or appraised values have been obtained are located in areas where comparable sales data is limited, outdated, or unavailable. Fair value estimates for collateral-dependent impaired loans are obtained from real estate brokers or other third-party consultants, and are classified as Level 3. Other real estate owned: The Company initially records OREO at fair value at the time of foreclosure. Thereafter, OREO is recorded at the lower of cost or fair value based on their subsequent changes in fair value. The fair value of OREO is generally based on recent real estate appraisals adjusted for estimated selling costs. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments may be significant and result in a Level 3 classification due to the unobservable inputs used for determining fair value. Only OREO with a valuation allowance are considered to be carried at fair value. Servicing Assets: Servicing assets represent the value associated with servicing loans that have been sold. The fair value for servicing assets is determined through discounted cash flow analysis and utilizes discount rates and prepayment speed assumptions as inputs. All of these assumptions require a significant degree of management estimation and judgment. The fair market valuation is performed on a quarterly basis for servicing assets. Servicing assets are accounted for at the lower of cost or market value and considered to be recognized at fair value when they are recorded at below cost and are classified as Level 3. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of dates indicated:
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The following table presents the Company’s assets and liabilities measured at fair value on a non-recurring basis as of dates indicated:
For assets measured at fair value, the following table presents the total net losses, which include charge-offs, recoveries, specific reserves, impairment on servicing assets, gain (loss) on sale of OREO, and OREO valuation write-downs recorded for the periods indicated:
Fair Value of Financial Instruments The fair value of a financial instrument is the amount at which the asset or obligation could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire holdings of a particular financial instrument. Because no market value exists for a significant portion of the financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature, involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on financial instruments both on and off the consolidated balance sheet without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Additionally, tax consequences related to the realization of the unrealized gains and losses can have a potential effect on fair value estimates and have not been considered in many of the estimates. The following methods and assumptions were used to estimate the fair value of significant financial instruments. Financial assets: The carrying amounts of interest-bearing deposits with other financial institutions and accrued interest receivable are considered to approximate fair value. The fair values of investment securities are generally based on matrix pricing (Level 2). The fair value of loans is estimated based on a discounted cash flow approach under an exit price notion for December 31, 2018 and an entry price notion for December 31, 2017. The fair value reflects the estimated yield that would be negotiated with a willing market participant. Because sale transactions of such loans are not readily observable, as many of the loans have unique risk characteristics, the valuation is based on significant unobservable inputs (Level 3). It is not practical to determine the fair value of FHLB and other restricted stock due to restrictions placed on its transferability. Financial liabilities: The carrying amounts of accrued interest payable are considered to approximate fair value. The fair value of deposits is estimated based on discounted cash flows. The discount rate is derived from the interest rates currently being offered for similar remaining maturities. Non-maturity deposits are estimated based on their historical decaying experiences (Level 3). The fair value of FHLB advances is estimated based on discounted cash flows. The discount rate is derived from the current market rates for borrowings with similar remaining maturities (Level 2). Off-balance-sheet financial instruments: The fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements. The fair value of these financial instruments is not material and is excluded from the table below. The following table presents the carrying value and estimated fair values of financial assets and liabilities as of the dates indicated:
|
Investment Securities |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities Debt securities have been classified as available-for-sale or held-to-maturity in the consolidated balance sheet according to management’s intent. The following table presents the amortized cost and fair value of the investment securities as of the dates indicated:
As of December 31, 2018 and 2017, pledged securities were $112.2 million and $109.9 million, respectively. These securities were pledged for the State Deposit from the California State Treasurer. The following table presents the amortized cost and fair value of the investment securities by contractual maturity as of December 31, 2018. Expected maturities may differ from contractual maturities, if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
The following table presents proceeds from sales and calls of securities available-for-sale and the associated gross gains and losses realized through earnings upon the sales and calls of securities available-for-sale for the periods indicated:
The following table summarizes the investment securities with unrealized losses by security type and length of time in a continuous unrealized loss position as of the dates indicated:
In accordance with FASB ASC 320, Investments - Debt and Equity Securities, the Company performs an OTTI assessment at least on a quarterly basis. OTTI is recognized when fair value is below the amortized cost where: (i) an entity has the intent to sell the security; (ii) it is more likely than not that an entity will be required to sell the security before recovery of its amortized cost basis; or (iii) an entity does not expect to recover the entire amortized cost basis of the security. All individual securities in a continuous unrealized loss position for 12 months or more as of December 31, 2018 and 2017 had an investment grade rating upon purchase. The issuers of these securities have not established any cause for default on these securities and various rating agencies have reaffirmed their long-term investment grade status as of December 31, 2018 and 2017. These securities have fluctuated in value since their purchase dates as market interest rates fluctuated. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell before the recovery of its amortized cost basis. In addition, the unrealized losses on municipal bonds are not considered other-than-temporary impaired, as the bonds are rated investment grade and there are no credit quality concerns with the issuers. Interest payments have been made as scheduled, and management believes this will continue in the future until the bonds get paid in full. The Company determined that the investment securities with unrealized losses for twelve months or more are not other-than-temporary impaired, and, therefore, no impairment was recognized during the years ended December 31, 2018, 2017 and 2016. |
Loans and Allowance for Loan Losses |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans Held-For-Investment The following table presents, by recorded investment, the composition of the Company’s loans held-for-investment (net of deferred fees and costs) as of the dates indicated:
In the ordinary course of business, the Company may grant loans to certain officers and directors, and the companies with which they are associated. As of December 31, 2018 and 2017, the Company had $2.4 million and none, respectively, of such loans outstanding. Allowance for Loan Losses The following table presents the activities in allowance for loan losses by portfolio segment, which is consistent with the Company’s methodology for determining allowance for loan losses, for the periods indicated:
The following tables present the information on allowance for loan losses and recorded investments by portfolio segment and impairment methodology as of the dates indicated:
Credit Quality Indicators The following table presents the risk categories for the recoded investment in loans by portfolio segment as of dates indicated:
Past Due and Nonaccrual Loans The following table presents the aging of past due recorded investment in accruing loans and nonaccrual loans by portfolio segment as of dates indicated:
Nonaccrual loans included loans guaranteed by the U.S. government agency of none and $831 thousand at December 31, 2018 and 2017, respectively. Impaired Loans The following table presents loans individually evaluated for impairment by portfolio segment as of the dates indicated. The recorded investment presents customer balances net of any partial charge-offs recognized on the loans and net of any deferred fees and costs.
The following table presents information on the recorded investment in impaired loans by portfolio segment for the periods indicated:
The following presents a summary of interest foregone on impaired loans for the periods indicated:
Troubled Debt Restructurings A TDR is a restructuring in which the Company, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. The restructuring of a loan includes, but is not limited to: (i) the transfer from the borrower to the Company of real estate, receivables from third parties, other assets, or an equity interest in full or partial satisfaction of the loan, (ii) a modification of the loan terms, such as a reduction of the stated interest rate, principal, or accrued interest or an extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk, or (iii) a combination of the above. A loan extended or renewed at a stated interest rate equal to the current interest rate for new debt with similar risk is not to be reported as a restructured loan. The following table presents the composition of loans that were modified as TDRs by portfolio segment as of the dates indicated:
The Company had no commitments to lend to customers with outstanding loans that were classified as TDRs as of December 31, 2018 and 2017. The determination of the allowance for loan losses related to TDRs depends on the collectability of principal and interest, according to the modified repayment terms. Loans that were modified as TDRs were individually evaluated for impairment and the Company allocated $86 thousand and $208 thousand of allowance for loan losses as of December 31, 2018 and 2017, respectively. The Company had no new loans that were modified as TDRs for the year ended December 31, 2018. The following table presents new loans that were modified as TDRs by portfolio segment for the years ended December 31, 2017 and 2016:
The following table presents information on loans that were modified as TDRs for which there was a payment default within twelve months following the modification for the periods indicated:
Purchases, Sales, and Transfers During the year ended December 31, 2018, the Company transferred $2.1 million of commercial property loans and $6.0 million of residential property loans to loans held-for-sale. The Company did not transfer any loans held-for-investment to loans held-for-sale during the year ended December 31, 2017. During the year ended December 31, 2016, the Company transferred $22.1 million of residential property loans to loans held-for-sale. The Company had no sales or purchases of loans held-for-investment during the years ended December 31, 2018, 2017 and 2016. Loans Held-For-Sale The following table presents a composition of loans held-for-sale as of the dates indicated:
|
Premises and Equipment |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment | Premises and Equipment The following table presents a composition of premises and equipment as of the dates indicated:
The Company recognized depreciation expense of $1.3 million, $1.1 million and $1.0 million for the years ended December 31, 2018, 2017 and 2016, respectively The Company leases its offices and loan production offices under operating leases that expire at various dates through April 30, 2027. The Company is also responsible for its pro rata share of common area expenses including maintenance, taxes, and insurance to the extent that the expenses exceed the Company’s pro rata share of the base year expenses. The following table presents the future lease rental payable under non-cancelable operating lease commitments for the Company’s offices and loan production offices as of December 31, 2018:
The minimum rental payments shown above are given for the existing lease obligations and are not a forecast of future rental expense. Total rental expense was approximately $2.7 million, $2.6 million and $2.6 million for the years ended December 31, 2018, 2017 and 2016, respectively. |
Servicing Assets |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing Assets | Servicing Assets At December 31, 2018 and 2017, total servicing assets were $7.7 million and $9.0 million, respectively. The Company sold loans of $97.7 million, $127.3 million and $138.9 million, respectively, with the servicing rights retained and recognized a net gain on sale of $5.4 million, $8.9 million and $8.6 million, respectively, during the years ended December 31, 2018, 2017 and 2016. Loan servicing income was $2.2 million, $2.4 million and $2.2 million for the years ended December 31, 2018, 2017 and 2016, respectively. The following table presents the composition of servicing assets with key assumptions used to estimate the fair value:
The following table presents activity in servicing assets for the periods indicated:
|
Other Real Estate Owned |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Real Estate Owned | Other Real Estate Owned The following table presents activity in OREO for the periods indicated:
The following table presents activity in OREO valuation allowance for the periods indicated:
The following table presents expenses related to OREOs for the periods indicated:
The Company did not provide loans to finance the purchase of its OREO properties during the years ended December 31, 2018, 2017 or 2016. |
Deposits |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | Deposits At December 31, 2018 and 2017, total deposits were $1.44 billion and $1.25 billion, respectively, and total interest-bearing deposits were $1.11 billion and $932.3 million, respectively. The aggregate amount of deposits reclassified as loans, such as overdrafts, was $210 thousand and $69 thousand at December 31, 2018 and 2017, respectively. The Company had California State Treasurer’s deposits of $100.0 million in time deposits of more than $250,000 at both December 31, 2018 and 2017. The California State Treasurer’s deposits are subject to withdrawal based on the State’s periodic evaluations. At December 31, 2018 and 2017, the Company pledged securities with amortized cost of $112.2 million and $109.9 million, respectively, for the California State Treasurer’s deposits. At December 31, 2018 and 2017, the Company had brokered deposits of $42.5 million and $52.5 million, respectively. Deposits from certain officers, directors and their related interests with which they are associated held by the Company were $6.0 million and $8.9 million at December 31, 2018 and 2017, respectively. The following table presents scheduled maturities of time deposits as of December 31, 2018:
|
Federal Home Loan Bank Advances and Other Borrowings |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank Advances and Other Borrowings | Federal Home Loan Bank Advances and Other Borrowings FHLB Advances The Company had $30.0 million and $40.0 million in FHLB advances at December 31, 2018 and 2017, respectively. FHLB advances consisted of fixed interest rates with original maturity terms ranging from two to five years at December 31, 2018. The following table presents scheduled maturities of FHLB advances as of December 31, 2018:
The following table presents financial data of FHLB advances as of the dates or for the periods indicated:
Advances paid early are subject to a prepayment penalty. At December 31, 2018 and 2017, loans pledged to secure from FHLB advances were $523.4 million and $711.8 million, respectively. The Company’s investment in capital stock of the FHLB of San Francisco totaled $7.3 million and $6.4 million, respectively, at December 31, 2018 and 2017. The Company had additional borrowing capacity of $386.0 million and $311.0 million, respectively, from the FHLB as of December 31, 2018 and 2017. Other Borrowing Arrangements At December 31, 2018, the Company had $45.2 million of unused borrowing capacity from the Federal Reserve Discount Window, to which the Company pledged loans with a carrying value of $50.8 million with no outstanding borrowings. In addition, the Company may borrow up to approximately $60.0 million overnight federal funds lines on an unsecured basis with correspondent banks at December 31, 2018. |
Shareholders' Equity |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | Shareholders’ Equity Common Stock Initial Public Offering On August 14, 2018, the Company issued and sold 2,385,000 shares of its common stock at an offering price of $20.00 in an underwritten IPO, for gross proceeds of $47.7 million. The underwriters were granted a 30-day option to purchase up to an additional 357,750 shares of common stock at the IPO price less the underwriting discount. Concurrently with the IPO, the Company’s common stock began trading on the Nasdaq Global Select Market under the symbol “PCB.” On September 5, 2018, the Company issued an additional 123,234 shares of its common stock upon the exercise by the underwriters of a portion of their 30-day option, for additional gross proceeds of $2.5 million. Aggregate net proceeds from the IPO were $45.0 million after deducting underwriting discounts, commissions and offering expenses. Private Placement Memorandum On August 5, 2016, the Company issued 1,400,300 shares at a share price of $10.91 per share to accredited investors through a private placement memorandum for gross proceeds of $15.3 million (or $15.2 million net of related expenses). Stock Dividends On December 21, 2015, the Company announced a 10% stock dividend that is payable on February 22, 2016 to shareholders of record as of the close of trading on January 29, 2016, with cash paid for any fractional shares. As a result of the stock dividend, the Company’s issued and outstanding common shares increased from 9,805,905 common shares to 10,786,496 common shares. In addition, the Company paid $2 thousand for fractional common shares on February 18, 2016. On December 13, 2016, the Company announced a 10% stock dividend that is payable on January 15, 2017 to shareholders of record as of the close of trading on December 30, 2016, with cash paid for any fractional shares. As a result of the stock dividend, the Company’s issued and outstanding common shares increased from 10,786,496 common shares to 11,865,145 common shares. In addition, the Company paid $2 thousand for fractional common shares on January 12, 2017. All per share data for all periods presented, including outstanding shares and outstanding stock options, have been retroactively adjusted to reflect the effect of these two stock dividends. These transactions were recorded as of December 31, 2016 and resulted in an increase in common stock and a corresponding decrease of retained earnings in the amount of $12.6 million. Cash Dividends The Company declared quarterly cash dividends on its common stock of $0.03 per share for each quarter of 2018 and 2017 and $0.027 per share for each quarter of 2016. Change in Accumulated Other Comprehensive Loss Components of accumulated other comprehensive loss consisted solely of the change in unrealized gains or losses on securities available-for-sale, net of taxes. Reclassifications from accumulated other comprehensive loss are recorded in the Consolidated Statements of Income either as a gain or loss. The following table presents changes to accumulated other comprehensive loss for the periods indicated:
|
Share-Based Compensation |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation On July 25, 2013, the Company adopted the Equity Based Stock Compensation Plan (“2013 EBSC Plan”) approved by its shareholders to replace the 2003 Stock Option Plan. The 2013 EBSC Plan provided for options to purchase 1,114,446 shares of common stock at a price not less than 100% of the fair market value of the stock. As of December 31, 2018, there were 596,576 shares available for future grants. Share-Based Compensation Expense The Company recognized share-based compensation expense of $648 thousand, $699 thousand and $717 thousand, respectively, and realized income tax benefits of $50 thousand, $88 thousand and $92 thousand, respectively, related to share-based compensation for the years ended December 31, 2018, 2017 and 2016. As of December 31, 2018, the Company had unrecognized share-based compensation expense of $1.5 million related to outstanding stock options that will be recognized over a weighted average period of 2.51 years. Stock Options The Company has issued stock options to certain employees, officers and directors. Stock options are issued at the closing market price on the grant date, and generally have a three-to five-year vesting period and contractual terms of ten years. The Company recognizes an income tax deduction upon exercise of the stock option by the option holder in an amount equal to the taxable income reported by the option holders. The option holder recognize taxable income based on the closing market price immediately before the exercise date less the exercise price stated in the grant agreement. The following table presents the weighted-average assumptions used to determine the fair value of options granted for the periods indicated:
The following table presents information related to the stock option plan for the periods indicated:
The following table represents stock option activity as of and for year ended December 31, 2018:
The following table represents information regarding unvested stock options for the year ended December 31, 2018:
|
Employee Benefit Plans |
12 Months Ended |
---|---|
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company has adopted a defined contribution 401(k) plan for the benefit of its employees. The Company matches 75% of an employee’s contribution up to 8% of the employee’s salary each year. The Board of Directors may make a discretionary contribution to the plan annually. The Company’s contribution to the plan for was $739 thousand, $629 thousand and $543 thousand for the years ended December 31, 2018, 2017 and 2016. |
Income Taxes |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The following table presents the components of income tax expense for the periods indicated:
The following table presents a reconciliation of the recorded income tax expense to the amount of taxes computed by applying the applicable statutory Federal income tax rate for the periods indicated:
On December 22, 2017, the Tax Reform Act was enacted which included a number of changes to existing U.S. tax laws, most notably a reduction of the U.S. corporate tax rate from 35% to 21%, for tax years beginning in 2018. As a result of the Tax Reform Act, the Company revalued its deferred tax assets and liabilities and recorded a reduction of its net deferred tax assets in the amount of $1.6 million in deferred income tax expense for the year ended December 31, 2017. The Tax Reform Act also places limits on certain tax deductions beginning in 2018. Deferred taxes are a result of differences between income tax accounting and GAAP with respect to income and expense recognition. The following table presents the components of the net deferred tax asset accounts recognized in the accompanying consolidated balance sheets as of the dates indicated:
The Company did not record valuation allowances for deferred tax assets as of December 31, 2018 and 2017 due to sufficient taxable income based on multiple years of consecutive profits and projected sustainable future profits. Management concluded that the related deferred tax assets were more likely than not to be realized and a valuation allowance was not necessary as of December 31, 2018 and 2017. At December 31, 2018 and 2017, the Company had no unrecognized tax benefits, or accrued interest or penalties. In the event the Company is assessed interest and/or penalties by federal or state tax authorities, such amounts will be classified in the consolidated financial statements as income tax expense. The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax in multiple state jurisdictions. The Company is no longer subject to the assessment of U.S. federal income tax for years before 2015. The statute of limitations for the assessment of California Franchise taxes has expired for tax years before 2014 (other state income and franchise tax statutes of limitations vary by state). |
Earnings Per Share |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The following is a reconciliation of net income and shares outstanding to the income and number of share used to compute earnings per share for the periods indicated:
There were 5,000 stock options excluded in computing diluted earnings per share because they were anti-dilutive for the year ended December 31, 2018. There were no stock options excluded in computing diluted earnings per share because they were anti-dilutive for years ended December 31, 2017, and 2016. |
Commitments and Contingencies |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies In the ordinary course of business, the Company enters into financial commitments to meet the financing needs of its customers. These financial commitments include commitments to extend credit and letters of credit. Those instruments involve to varying degrees, elements of credit, and interest rate risk not recognized in the Company’s consolidated financial statements. The following table presents outstanding financial commitments whose contractual amount represents credit risk as of the dates indicated:
The Company’s exposure to loan loss in the event of nonperformance on commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for the loans reflected in the consolidated financial statements. The Company maintained reserve for off-balance sheet items of $139 thousand and $121 thousand, respectively, at December 31, 2018 and 2017. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total amounts do not necessarily represent future cash requirements. The Company evaluates each client’s credit worthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company is based on management’s credit evaluation of the customer. As of December 31, 2018 and 2017, the Company had operating lease commitments of $11.3 million and $12.7 million, respectively. Litigation The Company is involved in various matters of litigation, which have arisen in the ordinary course of business. In the opinion of management, the disposition of pending matters of litigation will not have a material effect on the Company’s consolidated financial statements. |
Regulatory Matters |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters | Regulatory Matters Under the Basel III rules, the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer is being phased in from 0.0% for 2015 to 2.50% by 2019. Management believes as of December 31, 2018 and 2017, the Bank met all capital adequacy requirements to which they are subject to. Based on recent changes to the Federal Reserve’s definition of a “Small Bank Holding Company” that increased the threshold to $3 billion in assets, the Company is not currently subject to separate minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will again be subject to capital measurements independent of the Bank. For comparison purposes, the Company’s ratios are included in following discussion as well, all of which would have exceeded the “well-capitalized” level had the Company been subject to separate capital minimums. The Company and the Bank’s capital conservation buffer was 9.31% and 9.21%, respectively, as of December 31, 2018, and 5.20% and 5.12%, respectively, as of December 31, 2017. Unrealized gain or loss on securities available-for-sale is not included in computing regulatory capital. The following table presents the regulatory capital amounts and ratios for the Company and the Bank as of dates indicated:
The California Financial Code provides that a bank may not make a cash distribution to its shareholders in excess of the lesser of the bank’s undivided profits or the bank’s net income for its last three fiscal years less the amount of any distribution made to the bank’s shareholder during the same period. As a California corporation, the Company is subject to the limitations of California law, which allows a corporation to distribute cash or property to shareholders, including a dividend or repurchase or redemption of shares, if the corporation meets either a retained earnings test or a “balance sheet” test. Under the retained earnings test, the Company may make a distribution from retained earnings to the extent that its retained earnings exceed the sum of (a) the amount of the distribution plus (b) the amount, if any, of dividends in arrears on shares with preferential dividend rights. The Company may also make a distribution if, immediately after the distribution, the value of its assets equals or exceeds the sum of (a) its total liabilities plus (b) the liquidation preference of any shares which have a preference upon dissolution over the rights of shareholders receiving the distribution. Indebtedness is not considered a liability if the terms of such indebtedness provide that payment of principal and interest thereon are to be made only if, and to the extent that, a distribution to shareholders could be made under the balance sheet test. |
Revenue Recognition |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” and all subsequent ASUs that are related to Topic 606. As stated in Note 1, the implementation of the new standard did not have a material impact on the measurement, timing, or recognition of revenue. Accordingly, no cumulative effect adjustment to opening retained earnings was deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with the historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as gain or loss associated with mortgage servicing assets and financial guarantees are also not within the scope of the new guidance. Topic 606 is applicable to noninterest income such as deposit related fees, interchange fees, and merchant related income. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Noninterest income considered to be within the scope of Topic 606 is discussed below. Service charges and fees on deposits: Deposit account service charges consist of monthly service fees, account analysis fees, non-sufficient funds (“NSF”) charges and other deposit related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. NSF charges, and other deposit account service charges are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time as incurred. Debit card fees: When customers use their debit cards to pay merchants for goods or services, the Company retains a fee from the funds collected from the related deposit account and transfers the remaining funds to the payment network for remittance to the merchant. The performance obligation to the merchant is satisfied and the fee is recognized at the point in time when the funds are collected and transferred to the payment network. Gain (loss) on sale of other real estate owned: The Company’s performance obligation for sale of OREO is the transfer of title and ownership rights of the OREO to the buyer, which occurs at the settlement date when the sale proceeds are received and income is recognized. Wire transfer fees and other service charges: Wire transfer fees and other service charges are transaction based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time as incurred. The following table presents revenue from contracts with customers within the scope of ASC 606 for the periods indicated:
|
Condensed Financial Statements for Parent Company |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Statements for Parent Company | Condensed Financial Statements for Parent Company The parent company’s condensed statements of financial condition as of December 31, 2018 and 2017, and the related condensed statements of income and comprehensive income, and condensed statements of cash flows for the years ended December 31, 2018, 2017, and 2016 are presented below: Condensed Balance Sheets
Condensed Statements of Income and Comprehensive Income
Condensed Statements of Cash Flows
|
Quarterly Results of Operations (Unaudited) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) The following table presents the unaudited quarterly results of operations for the year ended December 31, 2018:
The following table presents the unaudited quarterly results of operations for the year ended December 31, 2017:
|
Subsequent Events |
12 Months Ended |
---|---|
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividend Declared on Common Stock. On January 24, 2019, the Company’s Board of Directors declared a quarterly cash dividend of $0.05 per common share for the first quarter of 2019. The dividend will be paid on or about March 15, 2019, to shareholders of record as of the close of business on February 28, 2019. The Company has evaluated the effects of events that have occurred subsequent to December 31, 2018 through the issuance date of these consolidated financial statements. Other than the event described above, there have been no material events that would require disclosure in the consolidated financial statements or in the notes to the consolidated financial statements. |
Basis of Presentation and Significant Accounting Policies (Policies) |
12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||
Principles of Consolidation | The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary as of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016. Significant inter-company accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, all references to the Company include its wholly owned subsidiaries. |
||||||||||||||||
Basis of Presentation | The accounting and reporting polices of the Company are based upon GAAP and conform to predominant practices within the financial services industry. Significant accounting policies followed by the Company are presented below. Certain prior period amounts have been reclassified to conform to the current year’s presentation. These reclassifications had no impact on the Company’s consolidated statements of financial condition or operations. |
||||||||||||||||
Use of Estimates in the Preparation of Financial Statements | The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates are subject to change and such change could have a material effect on the consolidated financial statements. Actual results may differ from those estimates. |
||||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, cash items in transit, cash due from the Federal Reserve Bank and other financial institutions, and federal funds sold with original maturities less than 90 days. Banking regulations require that banks maintain a percentage of their deposits as reserves in cash or on deposit with the Federal Reserve Bank. The reserve and clearing requirement balance was $0 at December 31, 2018 and 2017. |
||||||||||||||||
Investment Securities | Investment Securities Investment securities are classified as held-to-maturity or available-for-sale at the time of purchase based upon the intent of management, liquidity and capital requirements, regulatory limitations and other relevant factors. Debt securities are classified as held-to-maturity when management has the positive intent and ability to hold to maturity. Debt securities are classified as available-for-sale when they might be sold before maturity. Securities held-to-maturity are carried at amortized cost and securities available-for-sale are carried at fair value with unrealized gains and losses, net of taxes, recorded in other comprehensive income. Gains and losses on sales of securities are determined using the specific identification method. Net realized gains or losses on available-for-sale securities are included in noninterest income and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income. Amortization of premiums and accretion of discounts are included in interest income using the interest method. Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: OTTI related to credit loss, which is recognized as a charge against earnings, and OTTI related to other factors, which is recognized in other comprehensive income, net of tax. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. |
||||||||||||||||
Loans Held-For-Sale | Loans Held-For-Sale The Company originates SBA loans, and certain residential property and commercial property loans with the intention for sale in the secondary market. The Company records the guaranteed portion of SBA loans and these residential property and commercial property loans held-for-sale at the lower of cost or fair value on an aggregate basis. Fair value is based on commitments on hand from investors or prevailing market prices. Direct loan origination fees and costs on the loans are not amortized and are included in the determination of gains or losses from the sale of the related loans. A valuation allowance is established if the fair value of such loans is lower than their cost, with a corresponding charge to noninterest income. When the Company changes its intent to hold loans for investment, the loans are transferred to held-for-sale at lower of cost or fair value at the time of transfer, as determined on an individual loan level with charges made to allowance for loan losses when the fair value is lower than the cost. Amortization of deferred fees and cost on transferred loans is ceased and are included in the determination of gains or losses on sale of the related loans. Subsequent decreases in fair value, if any, are recognized through a valuation allowance with charges made to noninterest income. If a determination is made that a loan held-for-sale cannot be sold in the foreseeable future, it is transferred to loans held-for-investment at lower of cost or fair value on the transfer date with a charge made to noninterest income when the fair value is lower than the cost. Realized gains and losses from sales of loans are calculated using specific identification method and included in noninterest income. For sales of guaranteed portion of SBA and certain residential property loans, the loan servicing rights are retained. |
||||||||||||||||
Loans Held-For-Investment | Loans Held-For-Investment Loans held-for-investment that management has the intent and ability to hold for the foreseeable future are reported at their outstanding unpaid principal balances, net of any charge-offs, deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans. Loan origination fees and certain direct origination costs are deferred and recognized in interest income using the level-yield method over the life of the loan. Interest is accrued and credited to income as earned only if deemed collectible. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Accrual of interest on loans is discontinued when principal or interest payment is 90 days past due based on the contractual terms of the loan or when, in the opinion of management, there is reasonable doubt as to collectability. When loans are placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest payments that are subsequently received are applied as a reduction to the remaining principal balance as long as concern exists as to the collectability of the principal. Interest accruals are resumed on such loans only when the loans are brought current with respect to interest and principal and when, in the judgment of management, all principal and interest on the loans are expected to be fully collectable. Loan portfolio segments identified by the Company include: real estate (commercial property, residential property, SBA property and construction), commercial and industrial (commercial term, commercial lines of credit, SBA commercial term and trade finance), and other consumer loans. Risks associated with the Company’s real estate loans include a decline in the economy and a reduction in real estate values in the Company’s primary markets, an increase in market interest rates, increased competition in pricing and loan structure, and environmental risks. Risks associated with the Company’s commercial and industrial loans include a decline in the economy in the primary markets, an increase in market interest rates, and deterioration of a borrower’s or guarantor’s financial capabilities. Risk associated with the Company’s consumer loans include the same risks associated with the commercial and industrial loans, but also includes risks related to consumer bankruptcy laws which allow consumers to discharge certain debts. The Company classifies loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, collateral adequacy, credit documentation, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans in regards to credit risk. This analysis typically includes non-homogeneous loans, such as commercial property and commercial and industrial loans, and is performed on an ongoing basis as new information is obtained. The Company uses the following definitions for risk ratings:
|
||||||||||||||||
Allowance for Loan Losses | Allowance for Loan Losses Allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the loan is uncollectible. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. Amounts are charged-off when available information confirms that specific loans or portions thereof, are uncollectible. Generally, loans are charged off immediately when it is determined that advances to the borrower are in excess of the calculated current fair value of the collateral and if a borrower is deemed incapable of repayment of unsecured debt, there is little or no prospect for near term improvement and no realized strengthening action of significance pending. Other consumer loans are charged off based on delinquency, typically 120 days for closed loans and 180 days for open-end loans, or earlier when it is determined that the loan is uncollectible due to a triggering event, such as bankruptcy, fraud, or death. This methodology for determining charge-offs is consistently applied to each segment. The allowance consists of general reserves (collectively evaluated for impairment) and specific reserves (individually evaluated for impairment). General reserves cover non-impaired loans and are based on historical loss rates over the most recent four years for each portfolio segment, adjusted for the effects of qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the portfolio segment’s historical loss experience. The Company utilizes a migration analysis to measure actual historical loss experience, with the resulting historical loss rate adjusted for any applicable loss emergence period factors serving as the base loss rate to estimate the amount of appropriate loss reserve. Qualitative factors include consideration of the following: changes in lending policies and procedures; changes in economic conditions; changes in the nature and volume of the portfolio; changes in the experience, ability, and depth of lending management and other relevant staff; changes in the volume and severity of past due, nonaccrual, and other adversely graded loans; changes in the loan review system; changes in the value of the underlying collateral for collateral-dependent loans; concentrations of credit and the effect of other external factors such as competition and legal and regulatory requirements. Specific reserves relate to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered in determining impairment include payment status, collateral value, and the probability of collecting all amounts when due. Measurement of impairment is based on the expected future cash flows of an impaired loan, which are to be discounted at the loan’s effective interest rate, or measured by reference to an observable market value, if one exists, or the fair value of the collateral for a collateral-dependent loan. The Company selects the measurement method on a loan-by-loan basis, with the exception of collateral-dependent loans for which the most viable source of repayment is the continued operation of the collateral or liquidation of the collateral. The impairment for these loans are measured at the fair value of the collateral, less estimated selling cost. If a loan is impaired, the loan is reported, net of the allocated allowance, at the present value of estimated future cash flows using the loan’s effective interest rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments received on impaired loans are first applied to principal, then recognized as income based on existing methods to recognize income on nonaccrual loans. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered TDRs and classified as impaired with measurement of impairment as described above. |
||||||||||||||||
Premises and Equipment | Premises and Equipment Premises and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives, which ranges from three to seven years for furniture and equipment. Leasehold improvements are amortized using the straight-line method over the estimated useful lives of the improvements or the remaining lease term, whichever is shorter. Expenditures for betterments or major repairs are capitalized and those for ordinary repairs and maintenance are charged to operations as part of occupancy and equipment expense as incurred. |
||||||||||||||||
Federal Home Loan Bank and Other Restricted Stock | Federal Home Loan Bank and Other Restricted Stock The Bank is a member of the FHLB and Pacific Coast Bankers’ Bancshares (“PCBB”) system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB and PCBB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on the ultimate recovery of par value. Both cash and stock dividends are reported as income. |
||||||||||||||||
Other Real Estate Owned | Other Real Estate Owned OREO represents properties acquired through foreclosure or other proceedings. OREO is held-for-sale and is recorded at the lower of the recorded amount of the loan or fair value of the properties, less estimated costs of disposal. Any write-down to fair value at the time of transfer to OREO is charged to allowance for loan losses. Property is evaluated regularly to ensure the recorded amount is supported by its current fair value and valuation allowances to reduce the carrying amounts to fair value less estimated costs to dispose are recorded as necessary. Additions to or reductions from valuation allowances are recorded in noninterest expense. |
||||||||||||||||
Servicing Assets | Servicing Assets Servicing assets are recognized when servicing rights are retained from the sale of loans, such as sales of guaranteed portion of SBA and certain residential property, and are initially recorded at fair value. Fair value is calculated as the present value of estimated future cash flows from the servicing rights based on current market sources, such as the cost to service, discount rates, and prepayment speeds. The Company validates these assumptions with published industry data. Servicing assets are amortized into noninterest income over the expected life of the underlying loans. Servicing assets are evaluated for impairment based on the fair value of the servicing rights as compared to the carrying amount. Impairment is determined by stratifying servicing rights into groupings based on predominant risk characteristics, such as interest rate, loan type, and investor type. For purposes of measuring impairment, the Company has identified each servicing asset with the underlying loan being serviced. A valuation allowance is recorded when the fair value is below the carrying amount of the asset. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the valuation allowance may be recorded as an increase to income. The fair values of servicing assets are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and changes in discount rates. Servicing income as reported on the income statement consists of fees earned for servicing loans, net of the amortization of servicing assets and changes in the valuation allowance. The servicing fees are based on a contractual percentage of the outstanding principal and recorded as income when earned. |
||||||||||||||||
Investments in Qualified Affordable Housing Projects | The Company accounts for this investment under the proportional amortization method and the amortization expense is presented as a component of the income tax provision. Return of this investment is generated primarily through allocated federal tax credits and other tax benefits. |
||||||||||||||||
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share (“EPS”) excludes dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if options or other contracts to issue common stock were exercised or converted into common stock, or resulted in the issuance of common stock that then shared in the earnings of the entity. |
||||||||||||||||
Transfers of Financial Assets | Transfer of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
||||||||||||||||
Share-Based Compensation | Share-Based Compensation The Company recognizes the cost of employee services received in exchange for awards of stock options, or other equity instruments, based on the grant date fair value of those awards. This cost is recognized in income over the period which an employee is required to provide services in exchange for the award, generally the vesting period. |
||||||||||||||||
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established to reduce the deferred tax asset to the level at which it is more likely than not that the tax asset or benefits will be realized. Realization of tax benefits of deductible temporary differences and operating loss carry-forward depends on having sufficient taxable income of an appropriate character within the carry-forward periods. The Company has adopted FASB ASC 740-10, Income Taxes - Overall that clarifies the accounting for uncertainty in tax positions taken or expected to be taken on a tax return and provides that the tax effects from an uncertain tax position can be recognized in the consolidated financial statements only if, based on its merits, the position is more likely than not to be sustained on audit by taxing authorities. Interest and penalties related to uncertain tax positions are recorded as part of income tax expense. The Company elected to early adopt FASB Accounting Standard Update (“ASU”) 2018-02, Income Statement - Reporting Comprehensive Income as of and for the year ended December 31, 2017, which allows entities to reclassify the stranded tax effects as a result of applying the Tax Cuts and Jobs Act from accumulated other comprehensive income (loss) to retained earnings. As a result of the adoption, the Company recorded a decrease in accumulated other comprehensive income of $242 thousand and an increase in retained earnings for the same amount to eliminate the stranded tax effects at that date from the reduction in the federal statutory tax rate that was enacted in December 22, 2017 and became effective January 1, 2018. |
||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies In the ordinary course of business, the Company enters into off-balance sheet financial instruments consisting of commitments to extend credit, commercial letters of credit, and standby letters of credit as described in Note 15. Such financial instruments are recorded in the consolidated financial statements when they are funded or related fees are incurred or received. |
||||||||||||||||
Fair Value Measurement | Fair Value Measurement Fair value is the exchange price that would be received for an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Current accounting guidance establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value:
|
||||||||||||||||
Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted | Adopted Accounting Pronouncements During the year ended December 31, 2018, the following accounting pronouncements applicable to the Company were adopted: In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” This ASU clarifies principles for recognizing revenue from contracts with customers and supersedes current guidelines, Topic 605 - “Revenue Recognition,” and most industry specific guidance. The principal of this ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this principle, an entity should apply the following “Five-steps Model” prescribed in ASC 606: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. This ASU also specifies the accounting for some costs to obtain or fulfill a contract with a customer. The amended disclosure guidance requires sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This ASU, as amended by ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12, ASU 2016-20, ASU 2017-13, and ASU 2017-14, is effective for interim and annual periods beginning after December 15, 2017, and entities have the option of using either a modified retrospective or full retrospective approach for the adoption. The Company adopted this guidance on January 1, 2018 utilizing the modified retrospective approach. The Company’s source of revenue is net interest income and noninterest income. The scope of this ASU explicitly excludes net interest income and other revenues from transactions involving financial instruments, such as loans and securities. The Company identified and reviewed fees and service charges on deposit accounts and income and expense from other real estate owned (“OREO”), which are within the scope of this ASU. Based on this analysis performed, the Company concluded this ASU did not have significant changes to the method in which the Company recognizes these revenue streams. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. See note 17 for additional information. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurements of Financial Assets and Financial Liabilities.” The amendments in this ASU require equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; simplifies the impairment assessment of equity investments by requiring a qualitative assessment; eliminates the requirement for public business entities to disclose methods and assumptions for financial instruments measured at amortized cost on the statement of financial condition; requires the exit price notion to be used when measuring the fair value of financial instruments for disclosure purposes; requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability; requires separate presentation of financial assets and liabilities by measurement category; and certain other requirements. This ASU became effective for fiscal years beginning after December 15, 2017. The Company adopted this guidance on January 1, 2018 and the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. See note 2 for additional information. Recent Accounting Pronouncements Not Yet Adopted The following are recently issued accounting pronouncements applicable to the Company that have not yet been adopted: In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases,” and ASU 2018-11, “Leases Topic 842, Targeted Improvements,” to provide additional clarification, implantation, and transition guidance on certain aspects of ASU 2016-02. The amendments in ASU 2016-02 require lessees to recognize lease assets and lease liabilities for both leases classified as operating leases and finance leases, except leases with a term of 12 months or less where lessees are permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. For leases with a term of greater than 12 months, lessees are required to recognize a liability to make lease payments and a right-of-use assets representing its right to use the underlying asset for the lease term measured at the present value of the lease payments. ASU 2016-02 and ASU 2018-10 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for a public business entity. Under ASU 2018-11, an additional transition option was provided that would allow entities to not apply the new guidance in the comparative periods they present in their financial statements in the year of adoption. Under this optional transition method, entities will be allowed to continue using and presenting leases under ASC 840 for prior years comparative periods and then prospectively adopt ASC 842 on January 1, 2019, recognizing a cumulative-effect adjustment to the opening balance of retained earnings. The Company adopted this guidance in the first quarter of 2019 using the optional transition method with a cumulative effect adjustment to retained earnings without restating prior period financial statements for comparable amounts. The Company completed its review of its existing lease contracts and service contracts that may include embedded leases, and is in the process of updating processes and internal controls for leasing activities. The Company recognized right-of-use lease assets and liabilities of approximately $9.6 million and $10.6 million, respectively, at the date of adoption. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements other than the recognition of right-of-use lease assets and liabilities. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326).” The amendments in this ASU require that entities change the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model. Under this model, entities will estimate credit losses over the entire contractual term of the instrument from the date of initial recognition of that instrument. It includes financial assets such as loan receivables, held-to-maturity debt securities, net investment in leases that are not accounted for at fair value through net income, and certain off-balance sheet credit exposures. This ASU is effective for public business entities that are SEC filers for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has formed a committee, developed an implementation plan, and engaged a software vendor to assist the Company to build a model. The Company is in the process of completing a readiness assessment and is engaged in the implementation phase of the project. The Company is working on: (i) developing a new expected loss model with supportable assumptions; (ii) identifying data, reporting, and disclosure gaps; (iii) assessing updates to accounting and credit risk policies; and (iv) documenting new processes and controls. Based on the Company’s initial assessment of this ASU, the Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses which could potentially have a material impact on its consolidated financial statements as of the beginning of the first reporting period in which this ASU is effective. In March 2017, the FASB issued ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” The amendments in this ASU shorten the amortization period for certain callable debt securities acquired at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount, which continue to be amortized to maturity. Public business entities must prospectively apply the amendments in this ASU to annual periods beginning after December 15, 2018, including interim periods. The Company concluded that the adoption of this guidance will not have a material impact on its consolidated financial statements. |
Fair Value Measurements (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of dates indicated:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | The following table presents the Company’s assets and liabilities measured at fair value on a non-recurring basis as of dates indicated:
For assets measured at fair value, the following table presents the total net losses, which include charge-offs, recoveries, specific reserves, impairment on servicing assets, gain (loss) on sale of OREO, and OREO valuation write-downs recorded for the periods indicated:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Value and Estimated Fair Values of Financial Assets and Liabilities | The following table presents the carrying value and estimated fair values of financial assets and liabilities as of the dates indicated:
|
Investment Securities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities, Available-for-sale | The following table presents the amortized cost and fair value of the investment securities as of the dates indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities, Held-to-maturity | The following table presents the amortized cost and fair value of the investment securities as of the dates indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments Classified by Contractual Maturity Date | The following table presents the amortized cost and fair value of the investment securities by contractual maturity as of December 31, 2018. Expected maturities may differ from contractual maturities, if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized Gain (Loss) on Investments | The following table presents proceeds from sales and calls of securities available-for-sale and the associated gross gains and losses realized through earnings upon the sales and calls of securities available-for-sale for the periods indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unrealized Loss on Investments | The following table summarizes the investment securities with unrealized losses by security type and length of time in a continuous unrealized loss position as of the dates indicated:
|
Loans and Allowance for Loan Losses (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Held-For-Investment | The following table presents, by recorded investment, the composition of the Company’s loans held-for-investment (net of deferred fees and costs) as of the dates indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | The following table presents the activities in allowance for loan losses by portfolio segment, which is consistent with the Company’s methodology for determining allowance for loan losses, for the periods indicated:
The following tables present the information on allowance for loan losses and recorded investments by portfolio segment and impairment methodology as of the dates indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Categories for Loans by Portfolio Segment | The following table presents the risk categories for the recoded investment in loans by portfolio segment as of dates indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aging of Past Due Accruing Loans and Nonaccrual Loans by Segment | The following table presents the aging of past due recorded investment in accruing loans and nonaccrual loans by portfolio segment as of dates indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment by Portfolio Segment | The following table presents loans individually evaluated for impairment by portfolio segment as of the dates indicated. The recorded investment presents customer balances net of any partial charge-offs recognized on the loans and net of any deferred fees and costs.
The following table presents information on the recorded investment in impaired loans by portfolio segment for the periods indicated:
The following presents a summary of interest foregone on impaired loans for the periods indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Modified TDRs by Portfolio Segment | The following table presents the composition of loans that were modified as TDRs by portfolio segment as of the dates indicated:
The following table presents new loans that were modified as TDRs by portfolio segment for the years ended December 31, 2017 and 2016:
The following table presents information on loans that were modified as TDRs for which there was a payment default within twelve months following the modification for the periods indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Held-for-Sale | The following table presents a composition of loans held-for-sale as of the dates indicated:
|
Premises and Equipment (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Premises and Equipment | The following table presents a composition of premises and equipment as of the dates indicated:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Lease Rental Payable | The following table presents the future lease rental payable under non-cancelable operating lease commitments for the Company’s offices and loan production offices as of December 31, 2018:
|
Servicing Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Servicing Assets with Key Assumptions Used to Estimate Fair Value | The following table presents the composition of servicing assets with key assumptions used to estimate the fair value:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Servicing Asset | The following table presents activity in servicing assets for the periods indicated:
|
Other Real Estate Owned (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Real Estate Owned, Activity | The following table presents activity in OREO for the periods indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Real Estate Owned Valuation Allowance | The following table presents activity in OREO valuation allowance for the periods indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Real Estate Owned, Expenses | The following table presents expenses related to OREOs for the periods indicated:
|
Deposits (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time Deposit Maturities | The following table presents scheduled maturities of time deposits as of December 31, 2018:
|
Federal Home Loan Bank Advances and Other Borrowings (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of FHLB Advances and Financial Data | The following table presents scheduled maturities of FHLB advances as of December 31, 2018:
The following table presents financial data of FHLB advances as of the dates or for the periods indicated:
|
Shareholders' Equity (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | The following table presents changes to accumulated other comprehensive loss for the periods indicated:
|
Share-Based Compensation (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Weighted-Average Assumptions of Options Granted | The following table presents the weighted-average assumptions used to determine the fair value of options granted for the periods indicated:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Option Activity | The following table presents information related to the stock option plan for the periods indicated:
The following table represents stock option activity as of and for year ended December 31, 2018:
The following table represents information regarding unvested stock options for the year ended December 31, 2018:
|
Income Taxes (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | The following table presents the components of income tax expense for the periods indicated:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | The following table presents a reconciliation of the recorded income tax expense to the amount of taxes computed by applying the applicable statutory Federal income tax rate for the periods indicated:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities | The following table presents the components of the net deferred tax asset accounts recognized in the accompanying consolidated balance sheets as of the dates indicated:
|
Earnings Per Share (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following is a reconciliation of net income and shares outstanding to the income and number of share used to compute earnings per share for the periods indicated:
|
Commitments and Contingencies (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Outstanding Financial Commitments | The following table presents outstanding financial commitments whose contractual amount represents credit risk as of the dates indicated:
|
Regulatory Matters (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Regulatory Capital Amounts and Ratios | The following table presents the regulatory capital amounts and ratios for the Company and the Bank as of dates indicated:
|
Revenue Recognition (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue from Contracts with Customers | The following table presents revenue from contracts with customers within the scope of ASC 606 for the periods indicated:
|
Condensed Financial Statements for Parent Company (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Balance Sheet | Condensed Balance Sheets
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Statements of Income and Comprehensive Income | Condensed Statements of Income and Comprehensive Income
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows
|
Quarterly Results of Operations (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information | The following table presents the unaudited quarterly results of operations for the year ended December 31, 2018:
The following table presents the unaudited quarterly results of operations for the year ended December 31, 2017:
|
Fair Value Measurements - Other Real Estate Owned (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Net gains (losses) recognized | $ (288) | $ (509) | $ (176) |
Commercial property | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Net gains (losses) recognized | (53) | (49) | 0 |
SBA property | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Net gains (losses) recognized | (238) | (440) | (176) |
Other real estate owned | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Net gains (losses) recognized | $ 3 | $ (20) | $ 0 |
Investment Securities - Summary of Gains (Losses) on Available-for-sale Securities (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Investments, Debt and Equity Securities [Abstract] | |||
Gross realized gains on sales and calls of securities available-for-sale | $ 0 | $ 0 | $ 54 |
Gross realized losses on sales and calls of securities available-for-sale | 0 | 0 | 46 |
Net realized gains (losses) on sales and calls of securities available-for-sale | 0 | 0 | 8 |
Proceeds from sales and calls of securities available-for-sale | 1,075 | 0 | 7,816 |
Tax expense on sales and calls of securities available-for-sale | $ 0 | $ 0 | $ 3 |
Servicing Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Transfers and Servicing [Abstract] | ||||
Total servicing assets | $ 7,666 | $ 8,973 | $ 8,302 | $ 7,405 |
Financial assets transferred and accounted for as a sale | 97,700 | 127,300 | 138,900 | |
Gain on loans transferred and accounted for as sales | 5,400 | 8,900 | 8,600 | |
Servicing income | $ 2,200 | $ 2,400 | $ 2,200 |
Other Real Estate Owned (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Accounts, Notes, Loans and Financing Receivable, Classified [Abstract] | |||
Balance at beginning of year | $ 99 | $ 506 | $ 0 |
Additions | 0 | 0 | 506 |
Sales | (210) | (296) | 0 |
Net change in valuation allowance | 111 | (111) | 0 |
Balance at end of year | 0 | 99 | 506 |
Real Estate Owned Valuation Allowance [Roll Forward] | |||
Balance at beginning of year | 111 | 0 | 0 |
Additions | 0 | 111 | 0 |
Net direct write-downs and removal from sale | (111) | 0 | 0 |
Balance at end of year | 0 | 111 | 0 |
Expenses related to OREOs | (3) | 5 | 0 |
Net (gain) loss on sales | |||
Real Estate Owned Valuation Allowance [Roll Forward] | |||
Expenses related to OREOs | (3) | 5 | 0 |
Operating expenses, net of rental income | |||
Real Estate Owned Valuation Allowance [Roll Forward] | |||
Expenses related to OREOs | $ 0 | $ 0 | $ 0 |
Deposits (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Time Deposits [Line Items] | ||
Total deposits | $ 1,443,753 | $ 1,251,290 |
Total interest-bearing deposits | 1,110,000 | 932,300 |
Deposits reclassified as loans or overdrafts | 210 | 69 |
Securities pledged for deposits, amortized cost | 112,200 | 109,900 |
Brokered deposits | 42,500 | 52,500 |
Related party deposits | 6,000 | 8,900 |
Time deposits of $250,000 or less | ||
2019 | 475,864 | |
2020 | 37,787 | |
2021 | 3,694 | |
2022 | 1,778 | |
2023 | 511 | |
Thereafter | 0 | |
Total | 519,634 | |
Time deposits of more than $250,000 | ||
2019 | 268,951 | |
2020 | 12,288 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Total | 281,239 | |
Total time deposits | ||
2019 | 744,815 | |
2020 | 50,075 | |
2021 | 3,694 | |
2022 | 1,778 | |
2023 | 511 | |
Thereafter | 0 | |
Total | 800,873 | |
California State Treasurer's Deposits | ||
Time Deposits [Line Items] | ||
Time Deposits, $250,000 or More, Threshold | $ 100,000 | $ 100,000 |
Shareholders' Equity (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Unrealized loss on securities available-for-sale: | |||
Balance at beginning of year | $ 142,184 | $ 127,007 | $ 98,040 |
Other comprehensive loss | |||
Total other comprehensive loss, net of tax | (424) | (450) | (135) |
Reclassification of disproportionate tax effect | 0 | ||
Balance at end of year | 210,296 | 142,184 | 127,007 |
Unrealized gains or losses on securities available-for-sale | |||
Unrealized loss on securities available-for-sale: | |||
Balance at beginning of year | (1,223) | (531) | (396) |
Other comprehensive loss | |||
Unrealized loss on securities available-for-sale arising during the year | (595) | (778) | (245) |
Add: reclassification adjustment for net gain included in net income | 0 | 0 | 8 |
Tax effect of current period changes | 171 | 328 | 102 |
Total other comprehensive loss, net of tax | (424) | (450) | (135) |
Reclassification of disproportionate tax effect | 0 | (242) | 0 |
Balance at end of year | $ (1,647) | $ (1,223) | $ (531) |
Share-Based Compensation (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Jul. 25, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 648 | $ 699 | $ 717 | |
Realized income tax benefits related to share-based compensation | 50 | $ 88 | $ 92 | |
Unrecognized share-based compensation expense on outstanding stock options | $ 1,500 | |||
Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options authorized to be purchased | 1,114,446 | |||
Shares available for grant | 596,576 | |||
Weighted average recognition period for recognition of share-based compensation expense | 2 years 6 months 3 days | |||
Award contractual term | 10 years | |||
Option | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Option | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 5 years |
Share-Based Compensation - Valuation Assumptions (Details) - Option |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.58% | 2.08% | 0.00% |
Expected term | 6 years 2 months 6 days | 6 years 5 months 30 days | 0 years |
Expected stock price volatility | 37.10% | 42.72% | 0.00% |
Dividend yield | 0.78% | 0.89% | 0.00% |
Share-Based Compensation - Options, Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash received from options exercised | $ 310 | $ 134 | $ 569 |
Weighted-average estimated fair value per share of options granted (in dollars per share) | $ 15.36 | ||
Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised | $ 601 | 235 | 597 |
Cash received from options exercised | 310 | 134 | 569 |
Tax benefit from options exercised | $ 21 | $ 6 | $ 22 |
Weighted-average estimated fair value per share of options granted (in dollars per share) | $ 5.71 | $ 5.08 | $ 0.00 |
Employee Benefit Plans (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Retirement Benefits [Abstract] | |||
Employer matching contribution, percent of match | 75.00% | ||
Percent of employees gross pay, employer matching contribution | 8.00% | ||
Company's contribution to employee benefit plans | $ 739 | $ 629 | $ 543 |
Income Taxes - Components of Income Tax (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Current: | |||||||||||
Federal | $ 6,322 | $ 9,924 | $ 7,856 | ||||||||
State | 3,481 | 3,282 | 2,506 | ||||||||
Total current income tax expense | 9,803 | 13,206 | 10,362 | ||||||||
Deferred: | |||||||||||
Federal | 369 | 66 | (61) | ||||||||
Adjustment of deferred tax assets for enacted changes in tax rate | 25 | 1,622 | 0 | ||||||||
State | 247 | 45 | 100 | ||||||||
Total deferred income tax expense | 641 | 1,733 | 39 | ||||||||
Total | $ 2,934 | $ 2,816 | $ 2,028 | $ 2,666 | $ 4,623 | $ 3,494 | $ 3,584 | $ 3,238 | $ 10,444 | $ 14,939 | $ 10,401 |
Income Taxes - Reconciliation of Effective Interest Rate (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income Tax Disclosure [Abstract] | |||
Statutory federal tax rate | 21.00% | 35.00% | 35.00% |
State franchise tax, net of federal tax benefit | 8.48% | 6.90% | 6.94% |
Share-based compensation | 0.24% | 0.49% | 0.66% |
Remeasurement from the Tax Cuts and Jobs Act | 0.07% | 5.17% | 0.00% |
Other items, net | 0.27% | 0.10% | 0.02% |
Effective income tax rate | 30.06% | 47.66% | 42.62% |
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Deferred tax assets: | ||
Allowance for loan losses | $ 3,866 | $ 3,587 |
Share-based compensation | 264 | 209 |
Unrealized loss on investment securities | 744 | 574 |
State tax benefit | 739 | 694 |
Other | 529 | 614 |
Total deferred tax assets | 6,142 | 5,678 |
Deferred tax liabilities: | ||
Depreciation on premises and equipment | 453 | 423 |
Loans held-for-sale market adjustment | 1,653 | 787 |
Deferred loan origination costs | 582 | 527 |
Other | 77 | 94 |
Total deferred tax liabilities | 2,765 | 1,831 |
Deferred tax assets, net | $ 3,377 | $ 3,847 |
Income Taxes (Details) - USD ($) |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Tax penalties accrued | $ 0 | $ 0 |
Tax interest accrued | $ 0 | $ 0 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Basic earnings per share: | |||||||||||
Net income | $ 6,732 | $ 6,543 | $ 4,762 | $ 6,264 | $ 2,339 | $ 4,806 | $ 4,860 | $ 4,398 | $ 24,301 | $ 16,403 | $ 14,002 |
Weighted-average common share outstanding (in shares) | 14,397,075 | 13,408,030 | 12,532,807 | ||||||||
Basic earnings per share (in dollars per share) | $ 0.42 | $ 0.44 | $ 0.35 | $ 0.47 | $ 0.17 | $ 0.36 | $ 0.36 | $ 0.33 | $ 1.69 | $ 1.22 | $ 1.12 |
Diluted earnings per share: | |||||||||||
Net income | $ 6,732 | $ 6,543 | $ 4,762 | $ 6,264 | $ 2,339 | $ 4,806 | $ 4,860 | $ 4,398 | $ 24,301 | $ 16,403 | $ 14,002 |
Weighted-average common share outstanding (in shares) | 14,397,075 | 13,408,030 | 12,532,807 | ||||||||
Diluted effect of stock options (in shares) | 294,295 | 132,263 | 75,183 | ||||||||
Diluted weighted-average common shares outstanding (in shares) | 14,691,370 | 13,540,293 | 12,607,990 | ||||||||
Diluted earnings per share (in dollars per share) | $ 0.41 | $ 0.44 | $ 0.35 | $ 0.46 | $ 0.17 | $ 0.35 | $ 0.36 | $ 0.33 | $ 1.65 | $ 1.21 | $ 1.11 |
Stock options excluded in computing diluted earnings per share (in shares) | 5,000 | 0 | 0 |
Commitments and Contingencies (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Other Commitments [Line Items] | ||
Other Commitment | $ 130,918 | $ 113,377 |
Operating lease commitments | 11,298 | 12,700 |
SEC Schedule, 12-09, Reserve, Off-balance Sheet Activity | ||
Other Commitments [Line Items] | ||
Valuation reserve | 139 | 121 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Other Commitment | 127,443 | 109,835 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Other Commitment | 2,998 | 3,309 |
Commercial letters of credit | ||
Other Commitments [Line Items] | ||
Other Commitment | $ 477 | $ 233 |
Condensed Financial Statements for Parent Company - Condensed Balance Sheets (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|---|
Assets | ||||
Total assets | $ 1,697,028 | $ 1,441,999 | ||
Liabilities and Shareholders’ Equity | ||||
Total liabilities | 1,486,732 | 1,299,815 | ||
Total shareholders’ equity | 210,296 | 142,184 | $ 127,007 | $ 98,040 |
Total liabilities and shareholders’ equity | 1,697,028 | 1,441,999 | ||
Pacific City Financial Corporation | ||||
Assets | ||||
Cash | 1,254 | 990 | ||
Investment in Pacific City Bank | 209,012 | 141,174 | ||
Other assets | 49 | 20 | ||
Total assets | 210,315 | 142,184 | ||
Liabilities and Shareholders’ Equity | ||||
Other liabilities | 19 | 0 | ||
Total liabilities | 19 | 0 | ||
Total shareholders’ equity | 210,296 | 142,184 | ||
Total liabilities and shareholders’ equity | $ 210,315 | $ 142,184 |
Condensed Financial Statements for Parent Company - Condensed Statements of Income and Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income: | |||||||||||
Other income | $ 1,234 | $ 1,071 | $ 1,083 | ||||||||
Expense: | |||||||||||
Other expenses | 3,516 | 2,460 | 2,335 | ||||||||
Total noninterest expense | $ 10,135 | $ 9,520 | $ 10,940 | $ 9,631 | $ 9,620 | $ 8,958 | $ 8,796 | $ 8,521 | 40,226 | 35,895 | 32,514 |
Income (loss) before taxes and equity in undistributed subsidiary income | 9,666 | 9,359 | 6,790 | 8,930 | 6,962 | 8,300 | 8,444 | 7,636 | 34,745 | 31,342 | 24,403 |
Income tax benefit | 2,934 | 2,816 | 2,028 | 2,666 | 4,623 | 3,494 | 3,584 | 3,238 | 10,444 | 14,939 | 10,401 |
Net income | $ 6,732 | $ 6,543 | $ 4,762 | $ 6,264 | $ 2,339 | $ 4,806 | $ 4,860 | $ 4,398 | 24,301 | 16,403 | 14,002 |
Other comprehensive loss, net of tax | (424) | (450) | (135) | ||||||||
Total comprehensive income | 23,877 | 15,953 | 13,867 | ||||||||
Pacific City Financial Corporation | |||||||||||
Income: | |||||||||||
Dividends from subsidiary | 1,694 | 1,566 | 0 | ||||||||
Other income | 0 | 0 | 23 | ||||||||
Total income | 1,694 | 1,566 | 23 | ||||||||
Expense: | |||||||||||
Other expenses | 923 | 454 | 415 | ||||||||
Total noninterest expense | 923 | 454 | 415 | ||||||||
Income (loss) before taxes and equity in undistributed subsidiary income | 771 | 1,112 | (392) | ||||||||
Income tax benefit | (277) | (190) | (167) | ||||||||
Income (loss) before equity in undistributed subsidiary income | 1,048 | 1,302 | (225) | ||||||||
Equity in undistributed subsidiary income | 23,253 | 15,101 | 14,227 | ||||||||
Net income | 24,301 | 16,403 | 14,002 | ||||||||
Other comprehensive loss, net of tax | (424) | (450) | (135) | ||||||||
Total comprehensive income | $ 23,877 | $ 15,953 | $ 13,867 |
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 23,231 | $ 21,496 | $ 20,344 | $ 18,628 | $ 17,871 | $ 17,090 | $ 15,689 | $ 14,617 | $ 83,699 | $ 65,267 | $ 52,595 |
Interest expense | 5,375 | 4,780 | 4,462 | 3,334 | 2,938 | 2,707 | 2,305 | 2,147 | 17,951 | 10,097 | 7,014 |
Net interest income | 17,856 | 16,716 | 15,882 | 15,294 | 14,933 | 14,383 | 13,384 | 12,470 | 65,748 | 55,170 | 45,581 |
Provision (reversal) for loan losses | 294 | 417 | 425 | 95 | 1,713 | 586 | (274) | (198) | 1,231 | 1,827 | 2,283 |
Noninterest income | 2,239 | 2,580 | 2,273 | 3,362 | 3,362 | 3,461 | 3,582 | 3,489 | 10,454 | 13,894 | 13,619 |
Noninterest expense | 10,135 | 9,520 | 10,940 | 9,631 | 9,620 | 8,958 | 8,796 | 8,521 | 40,226 | 35,895 | 32,514 |
Income before income taxes | 9,666 | 9,359 | 6,790 | 8,930 | 6,962 | 8,300 | 8,444 | 7,636 | 34,745 | 31,342 | 24,403 |
Income tax expense | 2,934 | 2,816 | 2,028 | 2,666 | 4,623 | 3,494 | 3,584 | 3,238 | 10,444 | 14,939 | 10,401 |
Net income | $ 6,732 | $ 6,543 | $ 4,762 | $ 6,264 | $ 2,339 | $ 4,806 | $ 4,860 | $ 4,398 | $ 24,301 | $ 16,403 | $ 14,002 |
Earnings per common share, basic (in dollars per share) | $ 0.42 | $ 0.44 | $ 0.35 | $ 0.47 | $ 0.17 | $ 0.36 | $ 0.36 | $ 0.33 | $ 1.69 | $ 1.22 | $ 1.12 |
Earnings per common share, diluted (in dollars per share) | $ 0.41 | $ 0.44 | $ 0.35 | $ 0.46 | $ 0.17 | $ 0.35 | $ 0.36 | $ 0.33 | $ 1.65 | $ 1.21 | $ 1.11 |
Subsequent Events (Details) - $ / shares |
3 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 24, 2019 |
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
|
Subsequent Event [Line Items] | |||||||||||||
Cash dividend on common stock (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.027 | $ 0.027 | $ 0.027 | $ 0.027 | |
Subsequent Event | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Cash dividend on common stock (in dollars per share) | $ 0.05 |
8%3 +V:V()L;JG\=$9>)R! \X=1%0*Z+:3\? K*I])2R&)860 KCO+*2K0$X_FBH0:R[,=Q
MR*+>?'*%2+$84Q8LX1(O#JQ&E/Q%>I-="!\35 =CF^2^,8CA8\A2J5^K;P
M& I *O$<:B5: SLA%9
M5:I.0*\[V2,%=8X?]\=3ZO >\-+!I#=SY#JY2/GJ@J]5CG>N(.!0&J? ['"%
M)^#<"=DR?B^:>+5TQ.W\7?VS[]WV5/PHDB,S@2,_6^
M%^&)TR/WO2F#,[8BWGGQUGNO!4\.&;L&HCGF-,7P54RZ1##/OJ3@6RE._!\X
MWX;O-A7N(GSWA\+;;8+])L$^$NS_6^)6S-U?2=BJIPI,$Z?)DA(''2=YY5T&
M]H''-_D=/DW[9V&:3EMR0>=?-O:_1G3@I20W?H1:_\$60T+MPO'.G\TT9I/A
ML)]_$%N^$+4$L#!!0 ( !B!
JK!-G&:'"G-T,5)7GF7@;WC\4W^A$_3_E781G:.G(W'EXW]KXWQ
M@%)V5SA"+7ZPQ5!0^W#\A&<[C=ED>-///X@MW[CX#5!+ P04 " 8@7).
M-_&$^;0! #2 P &0 'AL+W=O
5
M:W-ZI*2"6@S*/>+X$>9Z#I3,Q7^&&R@?'I3X'"4J&U=2#M:AGEF\%"U>IEUV
M<1^GFT,ZP[8!? ;P!7",>=B4*"I_+YPH,H,C,5/O>Q&>>'?BOC=E<,96Q#LO
MWGKOK>#I,6.W0#3'G*<8OHK9+1',LR\I^%:*,_\'SK?A^TV%^PC?_Z'PW39!
MNDF01H+TOR5NQ!R2OY*P54\UF"9.DR4E#EV&PO=V]R:W-H965TR3#T'(HJ<23!.GR:)2]RI.\L([#^P-
MC6_R#A^G_227/D1:OT'FPT!M0O':W\VXYB-AM/=
M](/(_(V+OU!+ P04 " 8@7).:-HO<[H# @$P &0 'AL+W=OV0(&%L
MA\1BOEE4@%%>6PXOK0L*;*!2M@@0VV+*6?!E9HC8%G/)
ZJGX^JU+39;^U2/FM>RS.M_'VQ1[2<11>\7OFU>UFUW(9Z.=_F+_=.V
M?^V>:G<6'UF6F])NFTVU'=5V-8F^TOU<<1?0(_[>V'US